My comment: Two interesting pieces. Firstable an interview with IMF Managing Director Dominique Strauss-Kahn where he describes his thoughts about the coming summit in Washington. More or less, what he describes is what will be approved and does not changes from what I stated in the first message in this thread. Also, he unveils more clearly than I did, the future role and the future share of power inside the IMF.
The second piece from current US president represents the right-wing pressure to keep the system as it is and do not approve anything at the summit. As I told, right now, that postion has zero posibilities to win. Interview with IMF Managing Director Dominique Strauss-Kahn http://www.imf.org/external/np/vc/2008/110808.htm Bush Warns Against Dismantling Free Market System (Update1) http://www.bloomberg.com/apps/news?pid=20601087&sid=aANsWb6tD.II&refer=home Peace and best wishes. Xi On 10 nov, 00:12, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote: > My comments: First I poest what in my opinion are the main points of > the communique (I just quote them without any comment from me) and > then, I post the full communique. > > 1 the global economy is facing its most serious financial crisis and > economic > slowdown in decades. Focus on ensuring financial stability, supporting > global growth and maintaining recent achievements in poverty reduction > > 2. the global crisis requires global solutions and a common set of > principles > > 3. the current financial crisis is largely a result of excessive risk > taking and faulty risk management practices in financial markets, > inconsistent macroeconomic policies, which gave rise to domestic and > external imbalances, as well as deficiencies in financial regulation > and supervision in some advanced countries. > > 4. The key challenge is to resolve the financial crisis in a durable > manner and > to mitigate the impact of the crisis on global economic activity > > 5 We should consider ways of enhancing the identification of > systemically important institutions and ensure proper oversight of > these institutions, including credit rating agencies. We should ensure > that all sectors of the financial industry ... We also agreed that > financial institutions should have common accounting standards. > > 6. urge all multilateral development banks to work to sustain the > momentum of infra-structure investment for development in low income > countries. > > 7. 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. Emerging and developing economies should have > greater voice and representation in these institutions > > 8. we should review the adequacy of the resources of the IMF, the > World Bank Group and other multilateral development banks and stand > ready to increase them where necessary. In this context, we welcome > the use of the IMF´s emergency procedures ... and also the creation of > a new short-term liquidity facility, which allows quick disbursements > without traditional conditionality for countries with strong economic > policy track records. > > 9. In response to the challenges presented by the global financial > situation,and recognizing the global nature of financial markets, we > believe that the FSF must expand to a broader membership of emerging > economies. > > Peace and best wishes. > > Xi > > FULL FINAL COMUNIQUE OF THE G20 > MEETINGhttp://www.g20.utoronto.ca/2008-communique-081109.pdf > > 1. We, the Finance Ministers and Central Bank Governors of the G-20, > held > our tenth annual meeting in São Paulo, Brazil. We met at a time when > the > global economy is facing its most serious financial crisis and > economic > slowdown in decades. We discussed the causes of and policy responses > to > the global financial crisis, and shared perspectives on scenarios > going > forward, with a particular focus on ensuring financial stability, > supporting > global growth and maintaining recent achievements in poverty reduction > and social inclusion. > > 2. We welcomed that the Heads of G-20 countries will convene for a > Leaders´ Summit on Financial Markets and the World Economy to be held > on 15 November 2008 in Washington, noting that the global crisis > requires > global solutions and a common set of principles and that the > forthcoming > summit is an important step in enhancing international cooperation. We > stand ready to urgently take forward work and actions agreed by our > leaders to restore and maintain financial stability and support global > growth. > > 3. We noted that the current financial crisis is largely a result of > excessive > risk taking and faulty risk management practices in financial markets, > inconsistent macroeconomic policies, which gave rise to domestic and > external imbalances, as well as deficiencies in financial regulation > and > supervision in some advanced countries. > > 4. The key challenge is to resolve the financial crisis in a durable > manner and > to mitigate the impact of the crisis on global economic activity > through > comprehensive, coordinated and timely measures as appropriate. > Measures > must be designed not only to restore growth and financial stability, > but also > to minimize the negative social impact particularly in emerging and > low > income countries. The G-20, with its broad representation of major > systemically important economies, has a critical role to play in > ensuring > global financial and economic stability, and, with that purpose, is > committed to enhancing collaboration. > > 5. We welcomed the bold and decisive measures taken in a number of > countries to stabilize financial markets and restore the flow of > credit, to > support global economic growth. These measures have begun to stabilize > the banking system and other financial sectors. However, there remains > considerable volatility in global financial markets. We will continue > to > work together to take all necessary actions to reduce this volatility > and > restore normal functioning of money and credit markets in both > advanced > and emerging market countries. > > 6. We agreed that all countries must address the risks associated with > excessive leverage and improve their regulatory and supervisory > regimes > in order to deliver improved risk assessment and management by > financial > institutions, to enhance transparency and accountability in financial > markets, as well as to strengthen international cooperation to > identify and > respond preemptively to national and international systemic risks. > Furthermore, we recognized the need to improve the supervision and > governance of financial institutions, at both national and > international > levels. In this regard, we should consider ways of enhancing the > identification of systemically important institutions and ensure > proper > oversight of these institutions, including credit rating agencies. We > should > ensure that all sectors of the financial industry, as appropriate, are > regulated or subjected to oversight. We agreed that it is important to > address the issue of pro-cyclicality in financial market regulations > and > supervisory systems. We also agreed that financial institutions should > have > common accounting standards and clear internal incentives to promote > stability and that action needs to be taken, through voluntary effort > or > regulatory action, to avoid compensation schemes which reward > excessive > short-term returns or risk taking. Regulators and supervisors should > enhance their vigilance and cooperation with respect to cross-border > flows. > > 7. We expressed concern over the impact of the spreading international > financial crisis on the real economy through trade, credit and > currency > transmission channels. We considered in particular the severe > challenges it > poses to short-term growth. Advanced economies, where the crisis came > into being, are slowing markedly and some are already close to or in > recession. We are also seeing evidence of slower growth in emerging > markets, and while overall these countries should continue to play an > important role in supporting world growth, emerging economies are > facing > external financing pressures. We recognized that a pronounced lack of > confidence has led to severe credit constraints, which affects > consumption, investment and employment. We affirmed our determination > to take all > necessary steps to foster non-inflationary growth in a stable and > sustainable manner according to the needs and available instruments in > our > respective countries, including through monetary and fiscal policy. We > recognized the need to support the efforts of the emerging economies > and, > especially, to help them find additional resources for their > development. > We urged all countries to resist protectionist pressures, whether in > respect > of trade or investment, and reiterate our strong support for a prompt > and > ambitious conclusion of the Doha Development Round of trade > negotiations. > > 8. One of the most deleterious aspects of the current crisis is the > freeze in the > private credit and equity markets and the tendency of capital to flow > back > to where the current crisis originated. We should explore ways to > restore > emerging and developing countries’ access to credit and resume private > capital flows which are critical for sustainable growth and > development, > including ongoing infrastructure investment. > > 9. We noted that fiscal policies have served as an important > instrument to > address the current financial crisis, including through government > support > to the financial sector and have performed an important stabilization > role > and in mitigating further negative effects on markets and on economic > activity. Some countries are also considering additional fiscal > measures to > stimulate the economy and we agreed that countries must use all their > policy flexibility consistent with their circumstances, to support > sustainable growth, while we recognize the importance of fiscal > sustainability for macroeconomic stability and growth. It is essential > that > the recent gains in reduction of poverty and social inequality are not > set > back by the financial crisis and global economic slowdown. Less > developed countries would probably need more flexible frameworks. > Furthermore, in cases where severe market disruptions have limited > access > to the necessary financing for counter-cyclical fiscal policies, > multilateral > development banks must ensure arrangements are in place to support, as > needed, those countries with a good track record and sound policies. > > 10. We recognized that many low income countries are particularly > vulnerable > to commodity price volatility and changes in investor sentiment due to > the > financial crisis. We agreed on the importance of maintaining official > flows, > including aid flows, to these countries in line with existing > commitments > and urge all multilateral development banks to work ... > > leer más » --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. 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