Key emerging economies want financial system overhaulThe world's top emerging economies -- Brazil, Russia, India and China -- want "a reorganization of the world financial system," Brazilian Economy
He graduated in Economics from the Faculdade de Economia, Administração e Contabilidade of the University of São Paulo and is a professor of told reporters Friday after meeting his counterparts from the other countries.
The joint position by the so-called BRIC BRIC Brazil, Russia, India and China (world affairs)
BRIC Brooklyn Information & Culture
BRIC Biological Research Information Center (Korea)
BRIC Benign Recurrent Intrahepatic Cholestasis countries was worked out on the eve On the Eve (Накануне in Russian) is the third novel by famous Russian writer Ivan Turgenev, best known for his short stories and the novel Fathers and Sons. of a G20 meeting of finance ministers and central bankers in Sao Paulo that is seen as a precursor precursor /pre·cur·sor/ (pre´kur-ser) something that precedes. In biological processes, a substance from which another, usually more active or mature, substance is formed. In clinical medicine, a sign or symptom that heralds another. to an emergency G20 heads of state and government summit in Washington on November 15.
Mantega, summarizing discussions with finance ministers from Russia, India and China, said "we have come to the conclusion that there must be a reformulation, a reorganization of the world financial system."
Specifically, he said, the system put in place by the 1944 Bretton Woods agreement Bretton Woods Agreement
An agreement made in Bretton Woods, United States, in 1944. It set fixed exchange rates for major currencies and subsequently established the IMF.
Notes: was outdated and needed to be changed to take into account the greater economic importance of emerging nations.
The G7 -- Britain, Canada, France, Germany, Italy, Japan, 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. -- "is not sufficient," he said.
The emerging nations want to see the G20 -- which includes the G7 and the BRIC countries, plus other significant economies such as Australia, Indonesia and Turkey -- reinforced and elevated to a heads-of-state and heads-of-government level, above the finance ministerial status it currently has.
A joint statement by the BRIC finance ministers said they would "continue to take all necessary steps to lessen the impact of the recent turmoil on economic activity, aiming to preserve medium and long-term growth."
They stressed "there is an urgent need to find mechanisms... to restore the real economy's access to credit, stimulate demand and to resume capital flows."
The central banks This is a list of central banks.
Contents A B C D E F G H I J K L M N O P Q R S T U V W Y Z of several emerging nations have already stepped in to shore up their currencies, which have taken a beating in the past few weeks as foreign investors have fled because of the crisis.
The BRIC ministers put the blame for the current crisis with the world's most advanced economies, noting that it began in the United States and quickly spread to Europe.
"The crisis revealed weakness in risk management, regulation and supervision in the financial sectors of some advanced economies," the joint statement said. "Therefore we call for reform of regulatory and supervisory frameworks, as well as clearer rules and transparency."
Mantega berated international financial institutions such as the World Bank, which he said "didn't detect the crisis in time."
The joint statement said the BRIC countries wanted a reform of the International Monetary Fund and the World Bank to give more balance "between advanced and developing countries."
Mantega said "there is no lack of proposals" for reform for the weekend G20 meeting to consider, explaining draft texts from Australia, Brazil, Britain, France and Russia would be circulated.
"All go in the same direction," he said.
He said that G20 working groups would probably be formed after the meeting to look at establishing new norms for derivatives, investment banks The following is a list of investment banks Financial conglomerates
Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. and other issues targeted for an overhaul.
The Brazilian minister said the 100-day deadline the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the
European Community wanted to impose for concrete changes to the financial system following next week's G20 summit was "reasonable," although he predicted that many processes would "take quite some time" beyond that.