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9404
Thu, 06/05/2008 - 14:19
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https://oananews.org//node/9404
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G-8 OSAKA MEET TO MULL RESPONSE TO ENERGY, FOOD PRICE KIKES
TOKYO, June 5 (Kyodo) - Finance ministers of the Group of Eight major countries will put their heads together during a meeting in Osaka next week to work out solutions to the current surges in energy and food prices affecting the world economy, the chairman of the talks said Wednesday.
Finance Minister Fukushiro Nukaga, who will chair the June 13-14 gathering of G-8 financial leaders, said, "Fiscal and financial authorities of each economy must brace themselves for a situation in which a rise in inflationary expectation makes macroeconomic policy management more difficult." Speaking at the Foreign Correspondents' Club of Japan in Tokyo, Nukaga said, "Crude oil prices have sharply advanced over the past four years and if this trend continues for a long time, it will seriously affect corporate profit and personal spending in each country."The minister said the G-8 finance ministers will discuss long-term measures to address the oil price hikes, such as promoting energy-saving and efforts to develop alternative energy among oil-consuming countries, while urging oil-producing countries to boost production capacity and enhance transparency of the market.
Ministers from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States will also expect to hear from the International Monetary Fund about its findings on the real and financial factors behind soaring oil prices, he said. The prices are believed to be driven up in part by speculativemovements.
On food prices, Nukaga said food production should be increased globally to deal with the hikes. "Developing countries should introduce ways to boost their agricultural production such as by improvement of their irrigation facilities," he said.
The minister pointed out the need to support international research institutions in their attempts to improve the quality of crops and raise agricultural productivity.
Nukaga also said that the G-8 countries are expected to show progress in establishing a multilateral fund to help developing countries cope with global warming. The idea was originally raised by Britain, Japan and the United States during the G-7 meeting in Tokyo in February.
The G-7 consists of the G-8 member economies minus Russia.
"To tackle climate change, huge amounts of funds from both developed and developing countries are necessary. Not only from the public sector but also private-sector funds will be needed to realize a low-carbon society," he said.
The G-8 finance ministers will examine the role of financial institutions in promoting efforts to cut greenhouse gas emissions, and the effects of market mechanisms such as emissions trading among companies, he added.
The Osaka gathering will also take up ways to boost African economic development, Nukaga said.
"It is important to help African countries achieve self-sustained growth through the development of their own private sector," hesaid.
"Specifically, we should focus on cross-regional infrastructure building, setting up systems to facilitate investment and establishing local financial and capital markets" in Africa, he said.
Finance Minister Fukushiro Nukaga, who will chair the June 13-14 gathering of G-8 financial leaders, said, "Fiscal and financial authorities of each economy must brace themselves for a situation in which a rise in inflationary expectation makes macroeconomic policy management more difficult." Speaking at the Foreign Correspondents' Club of Japan in Tokyo, Nukaga said, "Crude oil prices have sharply advanced over the past four years and if this trend continues for a long time, it will seriously affect corporate profit and personal spending in each country."The minister said the G-8 finance ministers will discuss long-term measures to address the oil price hikes, such as promoting energy-saving and efforts to develop alternative energy among oil-consuming countries, while urging oil-producing countries to boost production capacity and enhance transparency of the market.
Ministers from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States will also expect to hear from the International Monetary Fund about its findings on the real and financial factors behind soaring oil prices, he said. The prices are believed to be driven up in part by speculativemovements.
On food prices, Nukaga said food production should be increased globally to deal with the hikes. "Developing countries should introduce ways to boost their agricultural production such as by improvement of their irrigation facilities," he said.
The minister pointed out the need to support international research institutions in their attempts to improve the quality of crops and raise agricultural productivity.
Nukaga also said that the G-8 countries are expected to show progress in establishing a multilateral fund to help developing countries cope with global warming. The idea was originally raised by Britain, Japan and the United States during the G-7 meeting in Tokyo in February.
The G-7 consists of the G-8 member economies minus Russia.
"To tackle climate change, huge amounts of funds from both developed and developing countries are necessary. Not only from the public sector but also private-sector funds will be needed to realize a low-carbon society," he said.
The G-8 finance ministers will examine the role of financial institutions in promoting efforts to cut greenhouse gas emissions, and the effects of market mechanisms such as emissions trading among companies, he added.
The Osaka gathering will also take up ways to boost African economic development, Nukaga said.
"It is important to help African countries achieve self-sustained growth through the development of their own private sector," hesaid.
"Specifically, we should focus on cross-regional infrastructure building, setting up systems to facilitate investment and establishing local financial and capital markets" in Africa, he said.
