[Skybird]

Another interesting on the G20 summit, an interview with Jospeh Stiglitz (Nobel for economy).

http://www.spiegel.de/international/...616743,00.html

SPIEGEL: The leaders of the 20 largest industrial nations are meeting in London this week to discuss the regulation of financial markets. Will the meeting be successful?

Stiglitz: I'm skeptical. The American government does talk a lot about stricter regulation of financial markets. I doubt that it's serious, though. The Americans have always been masters at changing a supposed regulation measure into further deregulation.

SPIEGEL: Do you expect this of the new Obama administration as well?

Stiglitz: Obama himself has made clear in many speeches that he wants to prevent prospecting in the American financial industry. But Obama is under pressure from Wall Street. Even within his own administration, there are a lot of officials who are only for cosmetic corrections.

SPIEGEL: The US is against too much regulation in the financial markets, Germany and Japan would prefer no further economic stimulus packages. Can much come out of the G20 summit?

Stiglitz: The governments will find the words to put a positive spin on the conference. If they can do anything, they can do that. Everyone will say that more regulation is necessary and that balance is needed between national sovereignty and common action in a globalized world. But how much substance will lie behind their words? I'm skeptical.

SPIEGEL: The economic crisis has severely damaged the economic model of finance-driven turbo-capitalism. Will this lead to a renaissance in the state economy?

Stiglitz: I don't think so. The fall of the Berlin Wall really was a strong message that communism does not work as an economic system. The collapse of Lehman Brothers on September 15th again showed that unbridled capitalism doesn't work either.

SPIEGEL: Could authoritarian systems like in China be the future?

Stiglitz: Besides the two extremes of communism and capitalism, there are alternatives, such as Scandinavia or Germany. The Chinese model has succeeded very well for their people, but at the price of democratic rights. The German social model, however, has worked very well. It could also be a model for the US administration.