G20 pledges 'all necessary steps' to restore stability
AFP - Monday, November 10
SAO PAULO (AFP) - - Finance chiefs representing the world's biggest developed and emerging economies agreed Sunday to take "all necessary steps" to restore confidence and stability in global markets, a statement said.
The Group of 20 meeting in Sao Paulo to lay groundwork for an emergency summit of its leaders next week, said there was a consensus for major reforms of global international financial system ravaged by a credit crisis.
Although no specific proposals emerged, the G20 statement said, "We agreed that we must draw policy lessons from the current crisis and take all necessary steps to restore market confidence and stability and to minimize the risk of a future crisis."
The statement said finance ministers and central bank officials at the meeting noted "that the global crisis requires global solutions and common set of principles," and added that "we stand ready to urgently take forward work and actions agreed by our leaders."
The G20 communique and statements from officials indicated a general agreement on broad principles among the ministers, noting that more detailed proposals would come from the November 15 summit of G20 heads of state and government hosted by US President George W. Bush.
Nonetheless, the Sao Paulo meeting suggested that the Bretton Woods system set up to govern international economics in 1994 should be revamped.
"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," the statement said.
"Emerging and developing economies should have greater voice and representation in these institutions."
This would mean reforms at the World Bank and International Monetary Fund, created at Bretton Woods.
The statement said the IMF, World Bank and other international financial institutions "have an important role to play, consistent with their mandates, in helping to stabilize and strengthen the international financial system, advancing international cooperation for development and assisting countries affected by the crisis."
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Picture taken during the opening of the G20 Ministers and Central Bank Governors' Meeting in Sao Paulo, Brazil, on November 8, 2008. Finance chiefs representing the world's biggest developed and emerging economies agreed Sunday to take "all necessary steps" to restore confidence and stability in global markets, a statement said.
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