The framework for sustainable economic growth that the Group of 20 leaders are poised to agree on Friday will lack a powerful enforcement mechanism, officials conceded yesterday.
G20 officials said no country would cede sovereignty on core economic decisions, so there would be no agreement to fine or punish countries that built up the sort of large trade surpluses or deficits that contributed to global trade imbalances.
But they were confident that large economies would be more willing to pursue co-ordinated economic growth strategies in future that did not rely on the US consumer being the engine of world economic growth.
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