Brussels, 10/11/2008 (Agence Europe) -Meeting last weekend in São Paulo, the finance ministers and central bankers of the G20 prepared for the summit to be held in Washington on 15 November at heads of state level, on the reform of the international financial architecture (see EUROPE 9778). They adopted a raft of principles to guide actions aiming to guarantee international financial stability. The emerging countries have called for better representation in the international economic bodies and organisations.
In a press release, the major world financiers state that the most urgent challenges were to resolve the financial crisis sustainably and to reduce the impact of this crisis on the global economy, by taking coordinated measures. They undertake to play a key role in drafting measures to achieve this, reduce the volatility on the global markets and restore credit levels. The G20 recognise the need to improve the supervision and governance of the financial institutions, to extend the Forum on stability to include the emerging economies and give these economies a greater say within the "Bretton Woods" institutions, the International Monetary Fund (IMF) and the World Bank. The press release also calls on all countries to resist the temptation to indulge in protectionism and reiterates support for a swift conclusion to the Doha round of commercial negotiations.
On the eve of the São Paulo meeting, the four principal emerging countries (Brazil, Russia, India and China) launched a joint appeal to play an increased role in the international financial system. "The emerging countries are ready to take the financial consequences of greater involvement in the IMF", said Brazilian Finance Minister Guido Mantega. Last April, the IMF enshrined a reform of its system of shares and representation to give more room to the emerging economies (see EUROPE 9637 and 9642). These emerging economies take the view that the reform, not yet ratified by the American Congress, does not go far enough. (M.B./trans.fl)