Saturday, September 26, 2009

What Was Decided by The G20 Meeting

Summary of what they negotiated and decided:

- 5% share of the IMF transferred from overpresented countries to to emerging nations (Europeans wanted 3%, emergin nations wanted 7%)
- 3% share of the Global Bank transferred to emerging nations (emerging nations wanted 6%)
- Emergency stimulus measures to continue
- Enhanced bank capitalization (proposed by the U.S.) was added in a generic manner
- Limits on executives bonusses also included, but no fixed limits as was the wish of European countries (but not the U.S.)
- G20 to permanently replace G7
- Next meeting in July 2010 in Muskoka, Ontario, Canada; then South Korea in September
- Creation of a new mechanism to control Global trade inbalances (to avoid countris like China, Japan, and Germany from exporting so much)

Not all is black and white however, the overrepreneted countries in the IMF however, apparently include Argentina and Saudi Arabia. Underrepresented countries include Spain, whose economy is in a tail spin. European countries were geratyly opposed to the redistribution of shares - and power - of the IMF, the U.S. less so.


Canadian P.M.:

"The G8 is smaller, and has a far greater set of shared values and experiences. But it is not a sufficient group to deal with major international economic issues," Prime Minister Stephen Harper told reporters after the summit". The Canadian press says "Harper is a late and reluctant convert to a concept that some fear could dilute Canada's influence - a view that Harper legitimized on Friday".

Brazilian President:

"The economic crisis allowed people to have abit of fersh air and nobody thinks they are the owners of the truth anymore." "The rich countries are now oike people who go to hospitals, they are more humble and modest." "Brazil will grow 5% this year".

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