The Cornwall Consensus reflects the commitment to determining an improved global economic condition, voiced at the G7 summit held in June 2021 in Cornwall.
It insists on the revitalization of the state's economic role, which would eventually improve societal goals, International solidarity and reform the global governance in the interest of the universal good.
The Cornwall Consensus - Historic Interest
The G7 summit endorsed displacement of the Washington consensus with the Cornwall Consensus. It authorized the Consensus, which has an extraordinary historical interest.
After Donald Trump's years, the G7 is back in action and consistently working towards breathing air of normalcy and substantive agenda.
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Significance of Cornwall Consensus
The Washington consensus, which British economists coined in 1989, supported the pro-globalist ideas of American leaders and the free market, which eventually led to market supremacy and diminishing state participation in healthcare and education-related areas.
On the other hand, the Cornwall Consensus promotes fixing market failures and restructuring its shape and creating a comprehensible unambiguous environment in the market that nurtures a green economy.
The financial crisis and the covid-19 pandemic had a severe chronic impact on the global economy. The Cornwall Consensus endeavours to improve these market distortions and create sustainable economic resilience.
Salient Features of Cornwall Consensus
- The Cornwall Consensus aims at reducing corporate taxes by accelerating global coordination.
- The Consensus aspires to invigorate a state's economic scenario to improve international cohesion and thus reform global governance for universal good.
- Radical reorientation for economic development in terms of GDPA, GVA, or financial returns to achieve the common fiscal goals.
- Encourage the states to coordinate mission-oriented public-private alliances for crafting a pliant, sustainable, even-handed, unbiased economic environment.
- Focus on decarbonization to pool grants from multilateral organizations to manage structural directive programs and reduce carbon dioxide from the environment.
- Thriving to create a market scenario by fixing market malfunction and breakdown for the survival of a green economy.
Cornwall Consensus - Geopolitical Context
The Cornwall Consensus focuses on the geopolitical context, which can be categorized into two segments:
- First is a Cold War that involves China, as it is unclear how the country and the global economic order will counter each other. Hence, enhanced harmonization and unity of purpose amongst the G7 is imperative.
- Second is the threat of authoritarian disruption involving many nations intending to undermine democracy. Demonstration of G7 countries as part of functional democratic civilization is thus indispensable.
FAQs on Cornwall Consensus
Q.1. What is the Cornwall Consensus?
The Cornwall Consensus is the new Consensus upon which the G7 summit agreed to ensure a free, fair, and open economic system with a sustainable green market.
Q.2. When was the Cornwall Consensus commenced?
The Cornwall Consensus commenced at the G7 summit held in Cornwall in June 2021.
Q.3. What is the significance of the Cornwall Consensus?
The Cornwall Consensus is important as it aspires to fix market failures and restructure them to create a comprehensible unambiguous environment in the market that nurtures a green economy.
Q.4. What do you mean by decarbonization concerning the Cornwall Consensus?
The Cornwall Consensus emphasizes decarbonization which means reducing carbon dioxide emissions to encourage a sustainable economic system.
Q.5. Why is Cornwall Consensus necessary?
The Cornwall Consensus is necessary as it will help to perk up the state's economic role in building global harmony. The Consensus aims to bring rectification in global governance for universal growth.