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The G20 Presidency: Nicolas Sarkozy formalizes and clarifies his plans
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31 January 2011 |
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On Tuesday January 24, Nicolas Sarkozy officially launched the French presidency of the G20/G8 summits before a panel of journalists and ambassadors. The press conference gave the French leader the opportunity to spell out his agenda regarding agricultural market regulation as well as reforming global governance and the international monetary system.
1) Regulation of financialized agricultural markets
Nicolas Sarkozy did emphasize that agricultural commodity market regulation is one of the strategic axes of the French presidency and stated, “A financial commodity market without regulation, it is the law of the jungle.” But what kind of regulation are we talking about? This is the issue to be addressed by the working group led by Russian Federation President Dmitri Medvedev, and charged by the French Presidency to make proposals based on four topics––regulating derivatives markets, creating of a common database for stocks, implementing a code of conduct to guarantee exports, and developing insurance products to protect farmers from climate hazards.
2) Restructuring global governance
For the French President, much remains to be done in spite of significant progress that includes the creation of the Financial Stability Board responsible for financial regulation. As far as agriculture is concerned, Nicolas Sarkozy keeps thinking it is urgent and crucial to set up a world agricultural organization. Indeed, the first steps of a global agricultural governance system are starting to materialize, as witnessed by the President’s announcement of an “Agricultural G20” to be held in June with the World Bank, the FAO and the IMF.
3) Reforming the international monetary system
France’s objectives are intended to recognize the emergence of new currencies in the international arena––such as the Yuan––and to curb currency volatility. There is no escaping the fact that volatility is a factor of instability on agricultural markets, since it is reflected in trade and marketplaces. On the same model as that of financial market regulation, Nicolas Sarkozy launched a working group on the international monetary system that will be co-chaired by German Chancellor Angela Merkel and Mexican President Felipe Calderon.
This wide-ranging program prefigures an intense and busy year 2011. But beyond a needed consensus on these three strategic axes, the hardest part for France will be to make progress on concrete proposals and measures to implement regulation. |
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Advocating for
agricultural market
regulation and global
food governance | |
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