↑ Grab this Headline Animator

Saturday, April 04, 2009

Developing agenda wins at G20 - Kabir Chibber

The G20 has agreed to give Brazil, India and other developing nations a greater say in the running of the World Bank and the International Monetary Fund, the two big organisations set up to run the world economy after World War II.

After 2011, the US could lose its veto power at those institutions and Western countries could find their voting rights severely reduced.

The convention that an American heads the World Bank and a European heads the IMF will also now be abandoned, the G20 leaders say.

The G20 also created a new Financial Stability Board, incorporating all members of the G20 for the first time, to replace the current Financial Stability Forum, which mainly consists of the central banks and finance ministries of US and European countries.

This fundamentally shifts the importance of developing economies to the financial system.

Brazil has been campaigning for a permanent seat on the United Nations Security Council, as well as a seat for the African continent, and that is likely to be Lula's next big push on the international stage


Post a Comment

<< Home