ID :
53572
Fri, 04/03/2009 - 07:48
Auther :
Shortlink :
https://oananews.org//node/53572
The shortlink copeid
G-20 leaders begin financial summit, vow to save economy despite rift+
LONDON, April 2 Kyodo - The Group of 20 advanced and emerging economies began a two-day financial summit in London Wednesday, renewing their vow to cooperate to save the foundering global economy despite clear signs of discord between them.
The leaders of the G-20 economies, which together make up about 90 percent of
the world's gross domestic product, agreed at a working dinner that both fiscal
stimuli and tightened financial regulations are necessary to prevent a repeat
of the current crisis, Japanese officials said.
But there is a deepening rift among G-20 members over which should take
precedence between fiscal stimulus plans and stricter financial oversight, with
the United States, Britain and Japan pushing for the former and France and
Germany the latter.
The second summit, chaired by British Prime Minister Gordon Brown, follows the
inaugural gathering in Washington in November. The event was overshadowed by
anti-capitalist and anti-globalization demonstrations more than 10,000
activists staged in London's City financial district. About 60 people were
reportedly arrested, while one protestor was found collapsed and reportedly
died at a hospital.
Earlier Wednesday, Brown met U.S. President Barack Obama and said the G-20
''must stand united to do whatever is necessary'' and that global solutions are
needed for what is a global crisis.
Obama called on all the G-20 members to do everything they can to stimulate
their respective economies, despite signs of disagreement over their commitment
to fiscal spending plans.
The United States, Britain and Japan favor large stimulus packages whereas
Germany and France are cautious about them and would like to see greater
regulations on tax havens and financial institutions.
French President Nicolas Sarkozy and German Chancellor Angela Merkel made a
joint appeal Wednesday for the G-20 leaders to endorse greater regulation of
financial markets, saying specific commitments to boost supervision must appear
in their joint statement.
''Our goal is to make certain that each country, taking into account its
different economic circumstances and political culture, is doing what's
necessary to promote economic growth,'' Obama said.
Brown pointed out that the G-20 countries' fiscal stimulus packages already
amount to $2 trillion and the group will agree to $100 billion to support trade
financing.
At the dinner, the leaders agreed it is necessary to boost aid for poorer
countries severely affected by the ongoing crisis through capital increase of
the International Monetary Fund and bolstering support for trade financing, the
Japanese officials said.
They also called for extending their pledge made in Washington that they will
refrain from raising new barriers to investment and to trade in goods and
services within the next 12 months, they said.
The second summit is reviewing steps taken so far by the 20 economies to
restore the global economy.
On top of fiscal stimuli to buoy the sinking economy and tighter financial
supervision, the document will focus on rejecting protectionism and reforming
the IMF and World Bank to better cope with a similar crisis and bolster the
voices of emerging economies.
From Japan, Aso and Finance Minister Kaoru Yosano are attending the summit.
Tokyo will declare its determination to implement a massive fiscal stimulus
plan and announce additional support measures for developing countries.
Before leaving for London, Aso ordered the government Tuesday to compile fresh
economic steps by mid-April. The economy-boosting steps are expected to involve
at least 10 trillion yen of fiscal spending, according to government sources.
On fiscal stimulus, Aso attacked Germany in an interview with the Financial
Times published Wednesday, saying the European nation does not understand the
importance of fiscal mobilization.
Aso made such remarks because Tokyo recognized the effectiveness of fiscal
stimulus in overcoming its own financial crisis following the burst of the
asset-inflated economic bubble in the early 1990s, the officials added.
The Japanese premier also unveiled fresh aid of more than $22 billion over the
coming two years to support trade finance involving developing countries, and
an additional 500 billion yen in yen loans and other official development
assistance to other Asian economies.
The 500 billion yen in ODA will be provided in addition to the 1.5 trillion yen
Aso pledged in January in his address to an annual meeting of the World
Economic Forum in Davos, Switzerland.
To expand the IMF's financial resources, Japan and European nations have each
pledged to provide $100 billion to the fund. The United States has called for
expanding the IMF's capacity to borrow extra funds from its 26 members by $500
billion.
Tokyo will also seek to increase the allocation of the fund's special drawing
rights to member economies to provide ample funds to embattled nations.
The G-20 consists of the G-7 nations -- Britain, Canada, France, Germany,
Italy, Japan and the United States -- plus Argentina, Australia, Brazil, China,
India, Indonesia, South Korea, Mexico, Russia, Saudi Arabia, South Africa,
Turkey and the European Union.
==Kyodo
The leaders of the G-20 economies, which together make up about 90 percent of
the world's gross domestic product, agreed at a working dinner that both fiscal
stimuli and tightened financial regulations are necessary to prevent a repeat
of the current crisis, Japanese officials said.
But there is a deepening rift among G-20 members over which should take
precedence between fiscal stimulus plans and stricter financial oversight, with
the United States, Britain and Japan pushing for the former and France and
Germany the latter.
The second summit, chaired by British Prime Minister Gordon Brown, follows the
inaugural gathering in Washington in November. The event was overshadowed by
anti-capitalist and anti-globalization demonstrations more than 10,000
activists staged in London's City financial district. About 60 people were
reportedly arrested, while one protestor was found collapsed and reportedly
died at a hospital.
Earlier Wednesday, Brown met U.S. President Barack Obama and said the G-20
''must stand united to do whatever is necessary'' and that global solutions are
needed for what is a global crisis.
Obama called on all the G-20 members to do everything they can to stimulate
their respective economies, despite signs of disagreement over their commitment
to fiscal spending plans.
The United States, Britain and Japan favor large stimulus packages whereas
Germany and France are cautious about them and would like to see greater
regulations on tax havens and financial institutions.
French President Nicolas Sarkozy and German Chancellor Angela Merkel made a
joint appeal Wednesday for the G-20 leaders to endorse greater regulation of
financial markets, saying specific commitments to boost supervision must appear
in their joint statement.
''Our goal is to make certain that each country, taking into account its
different economic circumstances and political culture, is doing what's
necessary to promote economic growth,'' Obama said.
Brown pointed out that the G-20 countries' fiscal stimulus packages already
amount to $2 trillion and the group will agree to $100 billion to support trade
financing.
At the dinner, the leaders agreed it is necessary to boost aid for poorer
countries severely affected by the ongoing crisis through capital increase of
the International Monetary Fund and bolstering support for trade financing, the
Japanese officials said.
They also called for extending their pledge made in Washington that they will
refrain from raising new barriers to investment and to trade in goods and
services within the next 12 months, they said.
The second summit is reviewing steps taken so far by the 20 economies to
restore the global economy.
On top of fiscal stimuli to buoy the sinking economy and tighter financial
supervision, the document will focus on rejecting protectionism and reforming
the IMF and World Bank to better cope with a similar crisis and bolster the
voices of emerging economies.
From Japan, Aso and Finance Minister Kaoru Yosano are attending the summit.
Tokyo will declare its determination to implement a massive fiscal stimulus
plan and announce additional support measures for developing countries.
Before leaving for London, Aso ordered the government Tuesday to compile fresh
economic steps by mid-April. The economy-boosting steps are expected to involve
at least 10 trillion yen of fiscal spending, according to government sources.
On fiscal stimulus, Aso attacked Germany in an interview with the Financial
Times published Wednesday, saying the European nation does not understand the
importance of fiscal mobilization.
Aso made such remarks because Tokyo recognized the effectiveness of fiscal
stimulus in overcoming its own financial crisis following the burst of the
asset-inflated economic bubble in the early 1990s, the officials added.
The Japanese premier also unveiled fresh aid of more than $22 billion over the
coming two years to support trade finance involving developing countries, and
an additional 500 billion yen in yen loans and other official development
assistance to other Asian economies.
The 500 billion yen in ODA will be provided in addition to the 1.5 trillion yen
Aso pledged in January in his address to an annual meeting of the World
Economic Forum in Davos, Switzerland.
To expand the IMF's financial resources, Japan and European nations have each
pledged to provide $100 billion to the fund. The United States has called for
expanding the IMF's capacity to borrow extra funds from its 26 members by $500
billion.
Tokyo will also seek to increase the allocation of the fund's special drawing
rights to member economies to provide ample funds to embattled nations.
The G-20 consists of the G-7 nations -- Britain, Canada, France, Germany,
Italy, Japan and the United States -- plus Argentina, Australia, Brazil, China,
India, Indonesia, South Korea, Mexico, Russia, Saudi Arabia, South Africa,
Turkey and the European Union.
==Kyodo
