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Amid rising nationalism, the G7 is in desperate need of a global mindset

Kevin Rafferty says the clubby grouping, which notably excludes China and India, could do with a shake-up at its upcoming meeting, and Barack Obama is best placed to drive change

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Haruhiko Kuroda, governor of the Bank of Japan, adjusts his tie during a photo session ahead of a meeting of G7 finance ministers and central bank governors in Sendai, Japan. Photo: Bloomberg

So-called leaders of the so-called “free world” are getting ready again to waste millions of dollars of taxpayers’ hard-earned money, not to speak of disrupting traffic and posing security problems for ordinary people, in yet another of their circus shows demonstrating their incompetence.

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It is time for the annual get-together of the Group of Seven, this year in Ise-Shima, Japan. The only hope is that US President Barack Obama will make one final effort to leave a legacy, not to save the world (a faint dream) but to see that the G7 has some semblance of world vision before his own country tears apart the global architecture, with devastating consequences.

Last weekend, we witnessed a shabby rehearsal for the summit: finance ministers and central bank chiefs agreed on the need to promote growth but could not agree on how or who should take a lead. They did not even bother to issue a formal communiqué. In a pathetic demonstration of narrow nationalistic views increasingly dominating these meetings, host minister Taro Aso was most concerned to get a free hand to weaken the yen, Japan’s mistaken policy of promoting growth via pandering to its big exporting corporations. US Treasury Secretary Jack Lew slapped him down.

G7 sidesteps gaps on policy and turns attention to fighting terrorism and tax evasion

People stage a rally last week in the central Japanese city of Nagoya against the upcoming G7 summit in Ise-Shima, claiming the future of the world should not be decided only by the major economies. Photo: Kyodo
People stage a rally last week in the central Japanese city of Nagoya against the upcoming G7 summit in Ise-Shima, claiming the future of the world should not be decided only by the major economies. Photo: Kyodo

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Finance chiefs are trapped by the unprecedented economic circumstances where throwing trillions of dollars of quantitative easing has failed to boost growth, and by the failures of their political leaders who lack both imagination and guts. The underlying problem is that we live in an increasingly globalising world, but few political leaders understand or care about issues beyond their own backyard.

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In the US, the demagogic rise of Donald Trump threatens so many of the limited global achievements, including trade openness and baby steps to repair the fragile environment.

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