and Employment o FranceIn this broad policy and economic discussion,panelists addressed a question posed by themoderator on the importance o sustainingthe economic recovery and regulatory reormmomentum through macroeconomic policy.Panel members told the audience that there needs to bemore o a ocus on long-term structural issues than short-term headlines, such as the deleveraging that is currentlytaking place and interacting with economic slowdowns.Without a long-term ocus, countries are likely to veer romone short-term crisis to another. The long-term structuralissues pre-date the recent crisis, but are complicated by theneed to recover rom the economic slowdowns in the crisis.To improve long-term prospects, the panelidentied three points that need to take place:Develop strategies that lay the basis or optimism in
the most advanced countries in the world. Demandrom leading economies inspires a whole set osupply chains and what keeps everyone wanting tocatch up with the advanced players. This includesstrategies to grow economies and overcomeunacceptably high levels o unemployment. Tackle the growing problem o social cohesion, with
median income or households having stagnatedor nearly two decades. This has resulted in two-tierlabor markets, where a signicant number o people,principally the young, women, and minorities, are leteither without entry into the market or with inerior jobs. It is no longer tenable i you want to recreateoptimism in both the advanced and emerging markets.Respond to the challenge o a new phase o
globalization, characterized by the growth o anemerging market middle class seeking education, health,clothing, better ood, and entertainment. In countrieslike China, rising wages are being driven by those movingup the skills ladder and entering the global market inmedium to high skilled jobs beyond the traditionalproduction industries to knowledge-based services.The panel also called or countries to continue to sustaineconomic recovery by coordinating regulatory reormeorts through orums like the G-20 thereby avoidingprotectionism. In that vein, the panelists discussedthree priorities or these orums: actual enorcementand implementation o the agreed upon regulatory andsupervisory environment; sustain the momentum onnon-corporate jurisdictions including the exchange oinormation relative to prudential obligations; and enhanceglobal governance to avoid temptation or protectionism. International monetary system loopholes compel greater
organization, coordination, and diversication amongthe G-20 and G-7, including tempering currencies toprotect developing countries and reducing riskwhen currencies are not diversied—rebalancingwhat is obviously out o balance now.Commodities in terms o price-setting, light ocused
on visibility and predictability, and market organizationrelative to raw materials, tangibles, and intangibles.This includes stocks, inventories, and reserves orgood supervision o commodity derivative products.
involving issues like implementing the 2008 Quotareorm and the review o the IMF board composition.This includes combining the appropriate ownershipo the G-20 and representation within it, andworking with the other global organizations such
Panel 1Microeconomic Challenges: PolicyChoices and Global Cooperation —Regional Perspectives