In addition, measures to strengthen export sectors, while maintaining open markets, would also help to reduce current account deficits. The G20 recently made an attempt to address the problem of imbalances at the political level: in September 2009 the “Framework for strong, sustainable and balanced growth” was launched. This framework includes a pledge to “promote more balanced current accounts”.
As a general objective, this certainly points in the right direction and the framework could indeed usefully support the process of restoring more balanced global growth. It is backed by all the major stakeholders and is driven at the highest level by the G20 leaders. Moreover, a Mutual Assessment Process forms part of the framework.