Fiscal challenge

The world cannot borrow its way out of the worst global financial and economic crisis in more than half a century - it does well to recognize that fact before it is too late.

By agreeing on the need for fiscal consolidation at the fourth Group of 20 (G20) summit in Toronto, global leaders have plumbed ahead with a determination unseen of late to end the rapid build-up of public debt.

Policymakers must face up to fiscal challenges sooner, or else they risk leaving unaccomplished the necessary, though painful, fiscal adjustments needed to restore their nations' long-term productivity and competitiveness.