2007 Meeting of the G20
Source: AllAfrica.com
The Group of 20 most industrialised countries met in South Africa on 17 and 18 November. The Finance Ministers and the Central Bank Governors of the G-20, adopted a reform agenda that translates the G-20 Accord for Sustained Growth into concrete policy measures for the countries that make up the G20.
The Meeting was fairly confident of continued global economic growth, but that downside risks to the near-term outlook have increased as a consequence of recent financial market disturbances. However, the meeting perceived that emerging markets were relatively unscathed by this turbulence and that slower growth would also reduce the current pressure on capacity and resources. G20 members agreed that the unwinding of global imbalances was a shared responsibility.
Reducing poverty and inequality remained enormous challenges for the G20 forum. Members discussed the prices of commodities including oil, focussing on biufuels as an alternative energy source. The case of Brazil, a leading producer of bio-ethanol was discussed. Key questions centred on how to develop a better energy mix, and the potential impact of this on climate change.
Another key issue raised was reform of the IMF and World Bank. South Africa, as host of the G-20 this year, pushed the group to focus more on changing voting rights at the IMF and World Bank to give emerging market countries a bigger say in the running of the institutions. The IMF agreed a year ago to give more shares to China, South Korea, Mexico and Turkey as a first step in a larger overhaul of its voting structure. Member countries have yet to agree on a new system that would give more representation to low-income and emerging countries. South Africa said they would work towards a new model of multilateralism in a manner that is systematic and gives due consideration to all involved.
Having taken over as chair of the G20 from Australia, which was host in 2006, South Africa now hands the chair over to Brazil, which takes over next year, followed by the United Kingdom in 2009.
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