Czech Republic President Vaclav Klaus set the stage by saying “We are meeting at a time when the world is in one of the deepest economic crisis since the Second World War.” But then he adds, “It would be a tragic mistake to fundamentally impair economic freedom in favor of state or supra-state regulation just now. The long-term experience tells us that it is thanks to the free markets and free entrepreneurship that we can enjoy the current material we welfare and economic progress.”

He then states the obvious but rarely seen; “Business cycles, accompanied by economic downturns recessions and crises did exist, do exist and we will exist in the future. In spite of them, the world has been — at least the last two centuries — characterized primarily by economic growth and growing prosperity.” Absolutely right!

The Czech President, an economist by training, added poignantly “We should build on the idea that the crisis was basically a failure of governments, not markets…Let us not delude ourselves that the economic cycle and its consequences can be prevented by the more extensive government regulation or by aiming at global governance of the world economy.”

President Klaus decried “Protectionism, in all its forms, should be resolutely condemned here today. Having seen former President Ronald Reagan speak from this very rostrum many years ago, I feel that his philosophical spirit was in the cavernous UN Assembly hall.

But there were lessons from Latin America as well. Colombian President Alvaro Uribe was not to be outdone. In a common-sense commentary, the leader of a state embattled by narco-traffickers and para-military militias viewed economic development in his country. “Our government encourages investment and entrepreneurship as a means to overcome poverty and built equality, Colombia advances competitiveness and confidence.”

Uribe then stated, “The economic crisis is a crisis of speculation, not of the free entrepreneurship creativity.” He warned “We fear a new protectionist phase and the selective closure of developed economies.” He was of course alluding to the planned USA/Colombia Free Trade Agreement which was blocked earlier this year by Nancy Pelosi’s Democrat party dominated Congress.

Panama’s new President Ricardo Martinelli equally stressed his country’s commitment to investment and free trade; “We are open for business. We believe in free trade as a tool to improve people’s lives. We want to do business with all nations and sign Free Trade Agreements with our strategic partners.”

Another view of economic development, albeit of the statist style, was presented by People’s Republic of China President Hu Jin-tao. Addressing the Assembly in measured and unemotional tones, Beijing’s leader looked more like Chairman of the Board of China Ltd., than the ruler of the world’s most populous state.

Even here there were concessions to economic reality, “Thirty years ago, the Chinese people started the historic journey of reform, opening up and socialist modernization. Since then the Chinese society has shown unprecedented vigor and creativity.” Yes, but the lesson learned was that economic progress came through the hard work and entrepreneurship of the Chinese people. But what happened between 1949 and1978, prior to Deng Xiaoping’s economic reforms? The legacy of the PRC’s first thirty years remains a moribund litany of wasted resources, forced socializations, brutal famine and human misery.

Hu Jin-tao asserted confidently, “We will continue to be committed to the path of socialism with our national characteristics.” China’s economy has prospered, but the official political libretto is still determined by the Chinese Communist Party, of which Hu is General Secretary in what remains the world’s largest dictatorship.

As industrial states confer at the G-20 Summit in Pittsburgh, delegates will again be confronted by the choice between freer markets or wider regulations and creeping protectionism. The temptation towards bigger government will likely prevail, and economy recovery, when it comes, will not be as strong or sustained.