G20 plans to regain global economic confidence

Officials at the recent G20 meeting to discuss the European Union debt crisis said they will seek to regain global economic confidence and are committed to creating sustained and inclusive globalization.

"The G-20 presents an agenda to restore confidence in the global economy through its commitment to reinvigorating growth, create jobs, ensure financial stability, and create more sustainable and inclusive globalization," World Bank Group President Robert B Zoellick said Monday in a written statement received here.

With members representing 187 countries, the World Bank Group highlighted the spill-over effects from the European crisis zone and how it might harm the poor in developing countries, Zoellick said.

The effects of the crisis have been to overshadow prospects for growth in developing countries which, during the last five years, supported the world economy by providing two-thirds of global growth.

Zoellick added that that the developing countries are now in a weaker position to face economic turmoil, compared to 2008. He also said developing nations remain more vulnerable than the developed countries.

"The summit agreed to review the IMF's resources in coping with the crisis. There is also an agreement on things to do in Europe to prevent the euro zone debt problems from becoming the problems of
others," Zoellick said.

These efforts would require monitoring or supervision of the various economic reforms, he said.

Additionally, the summit also evaluated the necessity of Europe's financial protective walls, which have adequate resources to prevent financial contagion from reaching countries that already have a heavy debt burden.

At the summit in Cannes, Paris, 3-4 November 2011, G20 leaders agreed that the Cannes Declaration contains the commitment of G20 members to implement and continue policies in the areas of fiscal, monetary, and financial sector reforms, taking into account the impact of domestic policies on other nations.

G20 member countries also have agreed to take concrete steps in the Action Plan formulated in response to Cannes, including for the G20 to restore market confidence, especially related to the crisis in the euro area, while accelerating the settlement of issues of global injustice.

Also, the financial system reform and policies seeks to enhance the capacity of the IMF in running the global financial rescue efforts in a more optimal manner, especially to enhance the capability of providing a warning before a crisis occurs

Source: ANTARA