As the world’s leaders – representing over 85 percent of the global economy – gather in London, the international community waits to see if the G20 summit can achieve results and meet high expectations (arguably too high for a one-day event).
Two weeks ago, Brazil, Russia, India and China issued a joint communiqué – the first ever – calling for a bigger voice on international bodies. The so-called BRICs are the most commonly mentioned rising powers and they met prior to the preparatory meeting for G20 finance ministers. The statement calls for a reform of the global economic order to give stronger sway to developing countries.
“We draw our special attention to the reform of international financial institutions… We stand for reviewing the IMF role and mandate so as to adapt it to a new global monetary and financial architecture…
“We also ask for the speeding up of the second phase of voice and representation reform in the World Bank Group…This process should ensure they fully reflect changes in the world economy and in this respect developing countries and emerging economies should have greater voice and representation…
“It also imperative that the next heads of the IMF and the World Bank be selected through open merit-based processes, irrespective of nationality or regional considerations…
“We welcome the decision to broaden the membership of the Financial Stability Forum (FSF) and invite as new members the G20 countries that are not currently in the FSF.”
Despite coordination between the BRICs, emerging powers are arriving in London with their own priorities and strategies.
Arkady Dvorkovich, Russian President Medvedev’s top economic adviser, commented that “there will be no separate joint (BRIC) communiqué, nor should there be. This is the summit of the leaders of the G20 countries.”
Will rising powers gain influence in the International Monetary Fund? The United States is proposing for China, Brazil, Russia, Mexico and India to enjoy greater power in lending decisions in return for new donations. And, will the Financial Stability Forum in Switzerland be officially expanded and renamed to include ten emerging markets?
More on these issues as the decisions are finalized…
Photo from the Russian Presidential Press and Information Office.
