A system of rewards will provide the incentive to press ahead with change. Although aid to the Soviets is a pressing question, summit leaders shouldn't let it distract them from the meat and potatoes issues facing the global economy. First, the summiteers must not weaken in their resolve against inflation. A global recession has intensified the cry for easier money to quicken the pace of recovery. There is some scope for easing of credit, but nothing would more jeopardize medium-term growth prospects than allowing inflation rates to take off again.
Trade barriers cost the industrial world hundreds of billions a year.
The latest proposal by EC Agricultural Commissioner Roy MacSharry would reduce subsidies that are leading to overproduction but it is a modest improvement. Aid to the Soviets has grabbed a lot of attention, but the chief priority for the G-7 remains the liberalization of world trade. This information is provided by the Financial Post. All rights reserved.