Here is what's noteworthy for me in the G20 communiqué:
- An additional commitment of $500 billion to increase the IMF's lending capacity, although only half of this is an immediate commitment, while the other half is promised as part of a future "expanded and more flexible New Arrangements to Borrow"
- A new SDR allocation of $250 billion
- An endorsement of the Financial Safety Forum's (FSF) principles on pay and compensation, which aim to align compensation more closely with risk
- The expansion and renaming of the FSF as a new Financial Stability Board (FSB), with a broader mandate
- An agreement that "the heads and senior leadership of the international financial institutions should be appointed through an open, transparent, and merit-based selection process"
The last of these may mean that the era of the World Bank and the IMF being run by Americans and Europeans, respectively, is over. And good riddance too.
On the whole the summit must be counted as a victory for the Europeans, who got what they wanted: a focus on new regulations and avoidance of any hint of real coordination (or targets) on fiscal stimulus.