(Nothing much of interest here; aside from good protests on Saturday,
does this indicate elite inaction will continue? "In one or two or three
months we will see the answers to these questions.")
G20 vows action on crisis
Nov 09 2008 21:25
Sao Paulo - Major nations pledged on Sunday "all necessary steps" to
boost sagging market confidence and to give a bigger voice to developing
countries in global economic affairs.
The finance ministers and central bank governors of the world's biggest
developed and emerging nations at the Group of 20 meeting in Sao Paulo
said there was consensus for major reforms of a global international
financial system ravaged by a credit crisis.
Although no specific proposals emerged, the G20 said in a statement: "We
agreed that we must draw policy lessons from the current crisis and take
all necessary steps to restore market confidence and stability and to
minimize the risk of a future crisis."
The statement said officials at the meeting noted "that the global
crisis requires global solutions and common set of principles," and
added that "we stand ready to urgently take forward work and actions
agreed by our leaders."
The G20 communique and statements from officials indicated a general
agreement on broad principles among the ministers, noting that more
detailed proposals would come from the November 15 summit of G20 heads
of state and government hosted by US President George W Bush.
Brazilian Finance Minister Guido Mantega said that at next week's
Washington summit "we'll have the political power" of the heads of state
and government "to proceed with proposals."
The Brazilian minister, who has led a call for emerging nations to play
a bigger role in financial affairs, said that officials saw a need for
quick actions to steady a troubled global economy.
"The solutions have to come fast. We have to change the tires with the
car in motion," he said.
"In one or two or three months we will see the answers to these questions."
But asked whether the G20 would replace the G7 as a steering committee
for economic affairs, he said, "This is an issue that has not yet been
resolved, but the G20 is a strong candidate to coordinate actions."
The Sao Paulo meeting concluded that the Bretton Woods system set up to
govern international finance in 1944 should be revamped. This would mean
overhauls of the World Bank and International Monetary Fund, created at
Bretton Woods.
Important roles to play
"We underscored that the Bretton Woods Institutions must be
comprehensively reformed so that they can more adequately reflect
changing economic weights in the world economy and be more responsive to
future challenges," the statement said.
"Emerging and developing economies should have greater voice and
representation in these institutions."
The statement said the IMF, World Bank and other international financial
institutions "have an important role to play, consistent with their
mandates, in helping to stabilise and strengthen the international
financial system, advancing international cooperation for development
and assisting countries affected by the crisis."
Stephen Timms, Britain's junior finance minister, noted that the G20
"has never been more relevant than it is today" and added that there was
"broad agreement across the G20 on the need for change.
"We want urgent coordinated action to stabilise the situation," he said.
French Finance Minister Christine Lagarde said "there was a convergence
of views on the response" to the crisis.
The ministers spoke after a meeting of the officials from the G20 group
of nations, which includes the G7 (Britain, Canada, France, Germany,
Italy, Japan and the United States) plus many important emerging
economies, including Brazil, India, China, Russia and Indonesia.
Opening the weekend session, Brazilian President Luiz Inacio Lula da
Silva said that a "new world financial architecture" was needed to
coordinate the response to a deepening crisis.
"This is a global crisis and it demands global solutions," Lula said.
"The crisis gives an opportunity for real changes," he said, adding: "We
cannot, we must not and don't have the right to fail."
European leaders have said they hope the Sao Paulo meeting will lay the
groundwork for the start of key reforms to be put in motion starting
with a November 15 summit.
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