Global policy makers should thank World Bank Group President Robert B. Zoellick for his comments about the future of the economy, though almost all of what he said in a recent address has been known within the world of politics and policy for the better part of a year.
“If we do not get ahead of events; if we do not adapt to change; if we do not rise above short-term political tactics or recognize that with power comes responsibility, then we will drift in dangerous currents. That is the lesson of history for all of us, developed and emerging economies alike,” Zoellick said.
What he did not say is how internal tensions within the EU countries cannot break the gridlock over what to do about the future of southern European countries, especially Greece. It is the prime example of how “responsibility” is interpreted from country to county. It is hard to say that the Greeks are entirely responsible for all of their own economic problems. A slow worldwide economy and a drop in tourism are also to blame. It is equally hard to blame Germany for not rushing in to financially save the weak EU nations. Citizens in Germany rightly believe that every euro spent to assist other countries is a euro that has to be generated within its own borders — perhaps through higher taxes and some form of austerity.
The same principles hold true in the U.S. “Short-term” political tactics are often ways to address what are believed to be policy over long-term structural trouble within the economy and policy that will influence the nation’s finances for the next decade. The debate about austerity and stimulus may seem like short-term wrangling for political advantage. It is not, in many cases, unless politicians work to their own interests every time.
Zoellick’s comments may be well-intentioned, but they do not apply much to the real world, where the fights over economic solutions may go on too long because of contention which, like it or not, is part of the process.
Douglas A. McIntyre
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