February 15, 2010 by akhilendra
G-20 Summit
Top officials from developed and developing nations in London advocated various stimulus packages to boost the global economical recovery. G-20 group was also concerned about the participation of developing nations in international economy as they assured that developing nations will get greater say in international financial institutions. They were also concerned about high pay packs of the bankers. They mentioned that fiscal and monetary policies to help economy are here to stay for as long as they are required. The international fund has said that global economy is beginning a sluggish recovery from recession and increased the forecast of global economic growth to 2.5 percent from the earlier stated 1.9 percent.
They want to maintain the stimulus because they fear that if that money which has been pumped in the market as stimulus packages, is removed can result in double dip recession. Germany and France in the past have advocated more discussion on exit strategy saying that due to these packages government debts have gone too high, but backed off in London. G 20 also said that they will bring some mechanism to put some check on bonus culture in bankers, which is also considered responsible for fueling the financial crisis. The committee was mainly concerned about long term goals and sustainability. United States tried to bring the attention of the group towards developing new international standards for increasing central bank reserves to combat loan losses in future. Though government didn’t directly push that but emphasized upon developing stronger regulations and banks should hold better capital.
The G-20 includes 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, Britain and the United States. The European Union, represented by its rotating presidency and the European Central Bank, is the 20th member. The group also emphasized upon giving better representation and voting powers to the developing economies. This meeting is very important in view of global recovery which depends a lot on the performance of these countries and its very important to have consensus among these countries.
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