In the midst of gloom, speculators reveling
Tuesday, 18 November 2008
From Fazle Rashid
NEW YORK, Nov 17: The much trumpted G-20 summit which was viewed more to provide the leaders with an opportunity to say au revoir (good bye) to outgoing US president George Bush rather than addressing the menacing problem of the severe downturn in global economy after all came out with some decisions that will solace the hearts of grief-stricken nations.
Whatever decisions have been arrived at will require the vetting of the incoming US administration because a global approach without the active support of America will be meaningless. The G7 nations have agreed " to open up membership of the key standards-setting bodies to top emerging economies like China and India and to increase their influence at the International Monetary Fund".
What does the term influence indicate has not been elaborated. The G20 nations will again meet in April, not in February as contemplated by French president Nicholas Sarkozy, signalling that the group is being readied to play a pivotal role in deflating the crisis. The question of the creation of a global regulator with cross-border outreach was not discussed in the summit in the face of stiff US resistance. " Colleges of supervisors" as proposed by British prime minister Gordon Browne was considered a possibility. The finance ministers have been asked to monitor the functioning of the global banks, review activities of the financial sectors and pay packets in corporate sector. They are to report back by March 31.
Further reforms will follow basing on the outcome of the report. Sensing trouble top executives of the Goldman Sachs have agreed not to take bonus. The leaders of the world's emerging economies made repeatedly a singular point; no longer will the world's financial rules will be set just by a club of rich countries. Brazil which has been a vocal critic of the USA bluntly said, 'we are talking about the G20 because G8 does no longer exists'. President Hu Jintao of China is looking ahead to a new international economic order that is fair, just, inclusive and orderly.
Manmohon Singh, prime minister of India is envisaging a new financial architecture suited to new challenges and vulnerabilities. The leaders called for comprehensive reforms of IMF and the World Bank. Saudi Arabia has refused to provide IMF with any cash infusion.
G20 nations pledged not to take any protectionist measures and expressed determination to make a vigorous bid to revive the stalled Doha round of talks.
Robert Zoellick, World Bank president, was quoted as saying that the global crisis is going to require a global response. He sounded a warning that the severe credit crunch could precipitate a huge drop in trade.
The G20 leaders agreed that they need to stand behind to assist developing nations engulfed by the sweeping crisis and promised to see that the developing nations caught up in the crisis have easy access to dollar finance. They will review the present resources available to the IMF and other multilateral funding agencies. IMF is set to provide Pakistan with a bail-out package amounting to $7.6 billion.
Agreeing that one meeting, that too with a lame duck president in the wealthiest nation in the world at the helm, was not enough to resolve the economic slowdown. In the midst of escalating gloom, one group of speculators are revelling. Investors who placed summer oil price to come down below $100 a barrel will go home with a reap of 2000 per cent profit in six months.
NEW YORK, Nov 17: The much trumpted G-20 summit which was viewed more to provide the leaders with an opportunity to say au revoir (good bye) to outgoing US president George Bush rather than addressing the menacing problem of the severe downturn in global economy after all came out with some decisions that will solace the hearts of grief-stricken nations.
Whatever decisions have been arrived at will require the vetting of the incoming US administration because a global approach without the active support of America will be meaningless. The G7 nations have agreed " to open up membership of the key standards-setting bodies to top emerging economies like China and India and to increase their influence at the International Monetary Fund".
What does the term influence indicate has not been elaborated. The G20 nations will again meet in April, not in February as contemplated by French president Nicholas Sarkozy, signalling that the group is being readied to play a pivotal role in deflating the crisis. The question of the creation of a global regulator with cross-border outreach was not discussed in the summit in the face of stiff US resistance. " Colleges of supervisors" as proposed by British prime minister Gordon Browne was considered a possibility. The finance ministers have been asked to monitor the functioning of the global banks, review activities of the financial sectors and pay packets in corporate sector. They are to report back by March 31.
Further reforms will follow basing on the outcome of the report. Sensing trouble top executives of the Goldman Sachs have agreed not to take bonus. The leaders of the world's emerging economies made repeatedly a singular point; no longer will the world's financial rules will be set just by a club of rich countries. Brazil which has been a vocal critic of the USA bluntly said, 'we are talking about the G20 because G8 does no longer exists'. President Hu Jintao of China is looking ahead to a new international economic order that is fair, just, inclusive and orderly.
Manmohon Singh, prime minister of India is envisaging a new financial architecture suited to new challenges and vulnerabilities. The leaders called for comprehensive reforms of IMF and the World Bank. Saudi Arabia has refused to provide IMF with any cash infusion.
G20 nations pledged not to take any protectionist measures and expressed determination to make a vigorous bid to revive the stalled Doha round of talks.
Robert Zoellick, World Bank president, was quoted as saying that the global crisis is going to require a global response. He sounded a warning that the severe credit crunch could precipitate a huge drop in trade.
The G20 leaders agreed that they need to stand behind to assist developing nations engulfed by the sweeping crisis and promised to see that the developing nations caught up in the crisis have easy access to dollar finance. They will review the present resources available to the IMF and other multilateral funding agencies. IMF is set to provide Pakistan with a bail-out package amounting to $7.6 billion.
Agreeing that one meeting, that too with a lame duck president in the wealthiest nation in the world at the helm, was not enough to resolve the economic slowdown. In the midst of escalating gloom, one group of speculators are revelling. Investors who placed summer oil price to come down below $100 a barrel will go home with a reap of 2000 per cent profit in six months.