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No magic bullet expected for economy at G20 meeting
Updated Fri. Nov. 14 2008 11:10 PM ET
CTV.ca News Staff
Leaders of the G20 nations are meeting in Washington but no one is expecting they can come out with a magic bullet to put down the worst economic crisis since the Great Depression.
"We've got to focus our attention on getting the world economy growing," Prime Minister Stephen Harper said ahead of Saturday's meeting.
The G20 leaders are discussing how to jump start the slumping economy and whether to impose more government control over banks and other lenders.
U.S. President George Bush opposes more regulation, but the real question is where does president-elect Barack Obama stand?
Obama, is noticeably absent from the meetings, but has representatives there.
Prime Minister Stephen Harper came down hard on the Bush administration Friday, blaming their policies for the global economic crisis.
"It is not a secret to anybody that in a very real way this problem began in the United States with a completely inadequate regulation of the financial sector," Harper said at Conservative convention in Winnipeg before heading to Washington later in the day.
But he said it is vital that leaders "spend most of our time dealing with the issue of how we will move forward and get the world economy moving again, and obviously undertake the kinds of financial regulations necessary to avoid this type of a crisis."
Bush continues to stand by his guns however, saying regulation is not the answer.
"The greatest threat to economic prosperity is not too little government involvement in the market, it is too much government involvement in the market," the unpopular outgoing president said.
Obama's people meet Harper's people
While Harper was waiting to sit down with the current U.S. president at the G20 summit meeting in Washington, his officials were busy meeting with representatives of Obama's.
The meeting between the Canadian contingent and former secretary of state Madeleine Albright and onetime Republican congressman Jim Leach, both representing Obama at the G20 conference, took place Friday morning.
It was the first first-to-face meeting between Canadian officials and Obama's team since the historic Nov. 4 election.
CTV's Ottawa Bureau Chief Robert Fife, reporting from Washington, said the meeting is a good sign for Canada-U.S. relations.
"It means we're being listened to and we're not being ignored," he said.
Fife said on CTV's Mike Duffy Live there are two tracks going on concurrently at the G20 meeting, one being lead by George Bush's agenda and "the real story, that is, what is Barack Obama to go when he takes over on January 20."
"The Canadian government has been working hard behind the scenes to get in touch with the transition team players in what will be the Obama administration."
A senior Harper official did not provide details on the meeting other than to say the conversation centred on the G20 summit.
"It was a positive meeting," the unnamed official told The Canadian Press. "We were able to articulate our position clearly, and we look forward to future discussions and meetings with the president-elect's transition team as they move forward on their work."
One proposal Canada is pushing during the summit meeting is an international "peer review" of every G20 country's national financial regulations.
Harper arrived in Washington for the meeting Friday afternoon.
Harper seeks consensus
Harper said he has been speaking with other G20 leaders ahead of the meeting, and said Canada will be seeking consensus on a communique that focus on global macroeconomic fundamentals.
The document is intended to "restore growth, recognizes that good regulation begins at home and supports mechanisms for peer review that are transparent and accountable," Harper said.
He said some leaders at the meeting will be advocating protectionism as the solution, while others will push for global regulations.
Canada will be promoting a more middle-of-the-road approach, he said.
"We recognize we are living in a more interconnected world than ever before," Harper said.
"No country can afford to isolate itself and to tackle this problem alone. Canada can serve as a good example for the rest of the world as we seek to restore confidence and get the world economy going once again."
He bragged that Canada has the strongest fiscal position in the G7, as well as strong regulations that have kept inflation in check and a sturdy banking system.
Co-operation is key
Earlier Friday, Finance Minister Jim Flaherty said it's crucial that more countries are involved in helping to solve the international financial crisis.
Flaherty, speaking from the Tory convention, said many large emerging economies want more of a say in how to deal with the crisis.
"They're unhappy with the fact that this crisis in financial markets emanated primarily from the United States, also from some of the European institutions... and (now) their economies are being damaged," Flaherty told CTV's Canada AM.
Flaherty said there has been talk about including these emerging economies in discussions at the Financial Stability Forum -- a creation of the G7.
"I think that's one of the issues... that will be important this weekend that we broaden the group countries that are working on how we move out of this international crisis," Flaherty said.
Flaherty, who will also head to Washington later in the day, said Canada has already had discussions with all of the G20 members ahead of the weekend meeting.
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