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Rethinking Global Economic Governance in Light of the CrisisBut what has happened already provides a number of useful insights.• Coordination, of course, works best when countries share a common objective.This was the case immediately after the crisis. But it has become less so, for reasonswhich will be obvious from the earlier part of this essay.• What is often required for coordination is not so much an agreement to act in thepursuit of a shared objective but instead a clearer understanding of what other playersintend to do.Such an understanding will make clearer for each player what that player needs todo. The G20MAP has engaged a number of international policymakers in a globalpolicymaking process and seems likely to lead to greater understandings of this kind.Progress of this kind will not, of course, be immediate, but it may be significant.Such understandings are especially necessary if the processes of adjustment which arerequired will be a gradual. In that case each policymaker needs to be able to trust thatother policymakers will carry out the adjustments which are required of them. I havedescribed in this essay three kinds of policy adjustments which are necessary:• That China moves towards a greater reliance on domestic demand;• That the US moves towards longer-term fiscal consolidation; and• That Europe moves towards reforms which enable southern Europe to begin to growagain.All of these adjustments will be gradual, and all of them need to be carried out in a waywhich relies on other policymakers playing their part as well.The world now needs a group of policymakers, from a number of countries, who acttogether so as to carry out the necessary policy adjustments. The G20MAP is in theprocess of creating a new global institutional structure, one in which these policymakersmay well be able to do what is required.22