An encouraging failure

G20: The United States arrived in Seoul this week looking like a villain. Soon, it was an inflexible China that was under attack. The G20 achieved little on issues like trade imbalances and misaligned currencies, but that is no reason not to try again. Both superpowers, especially China, benefit from the uncomfortable scrutiny it creates.

It still makes sense for the 20 biggest nations to come together. The G7 used to agree more often, but excluded emerging economies who make up 80 per cent of the world's population. The other main multilateral debating forum, the International Monetary Fund, is still mistrusted by some Asian nations for its highly conditional support after the 1997 crisis.

True, ideological rifts cannot be overcome in 24 hours. Take foreign policy: the United States likes to offer advice to other countries. Yet China dreads being seen to kowtow to outsiders. China's leaders are taciturn engineers who lack the persuasive skills to dazzle on the world stage -- unlike US President Barack Obama, a rhetorically skilled ex-lawyer.

Yet China does respond to G20 pressures, even if its politicians claim otherwise. Two days before Seoul, it allowed the yuan to strengthen by the largest amount since 2005, playing to the main criticism levelled by other G20 nations. Similarly, it unexpectedly ended its dollar peg in June, days before the Toronto G20. Beijing hates being pushed around, but doesn't want to be isolated. Where the G20 may work best is as a training ground for China as an emerging superpower. There is much to learn. While the U.S. administration held numerous background briefings at Seoul, China had one rather stiff press conference. And as Obama's aides praised talks with the Chinese as encouraging, President Hu grumbled about the lack of responsible policies from reserve-currency issuers.

Critics argue that the G20 is really a G2. Maybe, but for now it remains the only place where the two countries that create big imbalances must meet on equal terms with countries who suffer because of them. And if that does no more than exposing rising economies to open debate and superpower diplomacy, it is in the world's interest that the summit continues.