Wednesday, 23 September 2009
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G-20 to Snub Josaia Voreqe Bainimarama
China will call for reforms of the financial system, including giving developing countries a greater say in global governance, when leaders of 20 major developed and developing economies meet Thursday and Friday in Pittsburgh, according to senior Chinese officials.
China will stress at the Group of 20 summit that it is necessary for the world to maintain accommodative fiscal and monetary policy until the global economic recovery is firmly established, the officials said.
''The G-20 Pittsburg summit should work towards transferring the voting power from developed countries to developing countries'' in the International Monetary Fund and the World Bank, Guo Qingping, an assistant governor of the People's Bank of China, said in a briefing last week.
Assistant Finance Minister Zhu Guangyao said at the same briefing that China wants to see voting rights in the IMF and World Bank distributed equally between developed and developing countries, calling for 50-50 proportions for the two camps.
According to Zhu, developed countries account for 57 percent of IMF voting rights, while China and other developing countries hold the remaining share. Developed countries account for a 56 percent voting share at the World Bank.
''Developed countries and developing countries should have an equal say. That is to say half and half in the two institutions,'' he said, reflecting the growing clout of China and other emerging economies in the world economy.
President Hu Jintao is set to represent China at the G-20 summit. Vice Premier Wang Qishan, Finance Minister Xie Xuren and People's Bank of China Governor Zhou Xiaochuan are accompanying Hu on his U.S. trip, according to China's official Xinhua News Agency.
The central bank's Guo said Beijing also wants to see more people from developing countries posted in the senior management of the IMF.
''This will help increase the representation and legitimacy of the senior management of this organization,'' he said.
Traditionally, the IMF has been headed by a European, while the World Bank has been led by an American.
On macroeconomic policy management, Zhu urged major economies to maintain stimulus measures such as extra government spending and low interest rates to prop up the global economy, calling for vigilance over a so-called exit strategy to unwind extraordinary policy steps.
''We should be cautious about the exit strategy so as to avoid sending the wrong signal to the market,'' the assistant finance minister said. ''Only when the global economic recovery is firmly established can we consider a possible withdrawal from the extraordinary fiscal, monetary and financial support policy.''
Expressing confidence that China will achieve the target of an 8 percent expansion in 2009, Zhu said Beijing ''will continue to adopt a proactive fiscal policy and moderately easy monetary policy, consolidate the trend of stabilizing the economy and promote steady yet robust economic growth.''
''For the whole year of 2009, we are confident that we can maintain steady and robust economic growth, and this economic growth is of good quality,'' he said, citing data showing China's growth is led by domestic consumption.
The G-20 groups Argentina, Australia, Brazil, Britain, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United States and the European Union.
So if the G-20 are all in Pittsburgh getting autographs from the Pittsburgh Penguins and memorabilia within the golden triangle, who will be listening to our Dictator Frank?
Absolutely NOBODY that MATTERS!
Source: Kyodo News 09-22-09
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