Leaders of developed and developing countries all recognize the need for collective action to tame the worldwide recession. But collective action is easier said than done. Protectionism is tempting as jobs and incomes at home are vanishing. This essay argues that such inward-looking and mercantilist approach to the crisis will only contribute to the spread of the economic conflagration. It thereafter gives an overview of the different proposals to respond to the crisis, ones which require can only be achieved through international cooperation.
