G20 vows action on crisis, bigger voice for smaller economies
Major nations pledged Sunday "all necessary steps" to boost sagging sag
v. sagged, sag·ging, sags
1. To sink, droop, or settle from pressure or weight.
2. market confidence and to give a bigger voice to developing countries in global economic affairs.
The finance ministers and central bank governors of the world's biggest developed and emerging nations at the Group of 20 meeting in Sao Paulo said there was consensus for major reforms of a global international financial system ravaged rav·age
v. rav·aged, rav·ag·ing, rav·ages
1. To bring heavy destruction on; devastate: A tornado ravaged the town.
2. by a credit crisis.
Although no specific proposals emerged, the G20 said in a statement: "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 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.
Brazilian Finance Minister Guido Mantega Guido Mantega (born April 7, 1949 in Genoa, Italy) is a Brazilian economist, politician and current Brazil's Finance Minister.
He graduated in Economics from the Faculdade de Economia, Administração e Contabilidade of the University of São Paulo and is a professor of said that at next week's Washington summit "we'll have the political power" of the heads of state and government "to proceed with proposals."
The Brazilian minister, who has led a call for emerging nations to play a bigger role in financial affairs, said that officials saw a need for quick actions to steady a troubled global economy.
"The solutions have to come fast. We have to change the tires with the car in motion," he said.
"In one or two or three months we will see the answers to these questions."
But asked whether the G20 would replace the G7 as a steering committee steer·ing committee
A committee that sets agendas and schedules of business, as for a legislative body or other assemblage.
Noun for economic affairs, he said, "This is an issue that has not yet been resolved, but the G20 is a strong candidate to coordinate actions."
The Sao Paulo meeting concluded that the Bretton Woods system The Bretton Woods system of international monetary management established the rules for commercial and financial relations among the world's major industrial states. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary set up to govern international finance in 1944 should be revamped. This would mean overhauls of the World Bank and International Monetary Fund, created at Bretton Woods Bretton Woods can refer to:
"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."
The statement said the IMF IMF
See: International Monetary Fund
See International Monetary Fund (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."
Stephen Timms Stephen Creswell Timms (born 29 July 1955, Oldham, Lancashire) is a politician in the United Kingdom and is currently Minister of State for Competitiveness at the newly created Department for Business, Enterprise and Regulatory Reform. , Britain's junior finance minister, noted that the G20 "has never been more relevant than it is today" and added that there was "broad agreement across the G20 on the need for change.
"We want urgent coordinated action to stabilize the situation," he said.
French Finance Minister Christine Lagarde said "there was a convergence of views on the response" to the crisis.
The ministers spoke after a meeting of the officials from the G20 group of nations, which includes the G7 (Britain, Canada, France, Germany, Italy, Japan and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ) plus many important emerging economies, including Brazil, India, China, Russia and Indonesia.
Opening the weekend session, Brazilian President Luiz Inacio Lula da Silva sil·va also syl·va
n. pl. sil·vas or sil·vae
1. The trees or forests of a region.
2. A written work on the trees or forests of a region. said that a "new world financial architecture" was needed to coordinate the response to a deepening deep·en
tr. & intr.v. deep·ened, deep·en·ing, deep·ens
To make or become deep or deeper.
Noun 1. deepening - a process of becoming deeper and more profound crisis.
"This is a global crisis and it demands global solutions," Lula said.
"The crisis gives an opportunity for real changes," he said, adding: "We cannot, we must not and don't have the right to fail."
European leaders have said they hope the Sao Paulo meeting will lay the groundwork for the start of key reforms to be put in motion starting with a November 15 summit.