G20, IMF, and US differences - no policy coordination

There is a brewing conflict between the G20, the US, and the IMF which clearly shows that international finance policy coordination is not going to be easy. There is a transition of power to the emerging markets and from the developed world as measured both by economic output and financial capital.

At the heart of this controversy is the role of the US in global financial statecraft and policy-making. The US administration has agreed to change the voting structure for the IMF to give emerging markets more power and to allow for an increase in equity capital which will provide the IMF with more financial power. However, the US has not gotten Congressional approval, so it has not made good on its promises. The result is that G20 has warned the US that it should move ahead with the changes or it will have to take some alternative action. There is really very little the G20 can do, but generating this public display of displeasure is unusual and points to the changing landscape of global financial markets and policy coordination.

 It shows the growing power of emerging markets in both fiancnial and economic matters regardless of what the US may think. The tide is running against US financial hegemony.