While the G20 contains countries of small significance, it does include all important advanced and emerging countries. The fact that this group could meet and commit itself to a substantial agenda and another meeting in April 2009 shows belated recognition of the shift in the balance of economic power.

As important is the consensus on the roots of the crisis and what needs to be done. On the former, the communiqué recognises not just the failures of the financial system itself, but also the underlying mistakes in macroeconomic policies. On the latter, it stresses two imperatives: strong and co-operative action to stimulate the world economy and maintenance of the open economy on which all depend.

If we have learnt anything from the catastrophe of the 1930s it is the importance of avoiding beggar- thy-neighbour policies, particularly protectionism. Fortunately, at the rhetorical level, the leaders seem to understand that they must hang together or hang separately. The commitment to completion of the Doha round may even be real. More important will be strong action to reduce external imbalances, particularly by large countries with huge current account surpluses.