It often is observed that communiques represent noting; only substance is conclusive. If the G8 communique signals anyting, it is that the status quo is alive and well, and the finance ministers have its maintenance as their dominant goal. The finance ministers thanked James Wolfenson for his work at the World Bank, and they welcomed Paul Wolfowitz to his new post. In recognition of the semi-controversial nature of Mr. Wolfowitz's selection, the G8 enumerated a series of initial objectives for him. These objectives can be summarized with two words: "development" and "poverty".
The G8 was expected to take a more aggressive tact towards debt reduction and/or negation for developing states. This did not happen even in its mildest form. The communique referenced rising energy prices as the main cause of continued developing state debt, but no tangible solutions were offered to offset or solve that concern. It is analogous to saying: "You have a problem; we know what is your problem; we clearly identify it for you; beyond that we are no help to you, but we gave Mr. Wolfowitz (who should be able to help you) his marching orders". So much for the G8.
The G8 truly can do nothing to solve these problems its quarterly communiques describe. The unfortunate fact is that neither the G8 nor the G10, the G20, the G21, nor the G77 can do anything alone to solve the problems of developing state debt or poverty or rising energy prices. Those problems can be solved by other multilateral organizations or by each developing state. The IMF and the World Bank have different goals and roles in the international finance system. The IMF examines data from each of its member states and issues reports to offer economic projections. It also serves as a guarantor of loans for structural development projects. The World Bank - whose official name is the International Bank for Reconstruction and Development - provides loans for specific projects. The IMF and the World Bank may have overlapping interaction, but their purposes are quite distinct. They are the entities that can play a dynamics-shifting part in the process of eliminating emerging markets' debt.
What then is the G8's purpose? Its main role now is to maintain communication and consensus among the world's most industrialized states. Although China and other Asian economies may join its membership (the only current G8 member is Japan), those economies still claim note in the G8's vaguely worded communiques. China is one example: This quarterly G8 communique reiterates the Group's commitment to freely floating currency exchange rates. This assertion is aimed directly at China which maintains a fixed currency peg that allows imports to keep their low costs. The G8 can reiterate its preferences ad infinitum, but China seems unlikely to revise or retract its currency peg.
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