The G20's aim?

Per the work programme for 2006:

The G-20 has had a mandate to review the Bretton Woods institutions from its inception in 1999. . . In 2006, the G-20 will monitor progress of reviews already underway, provide further focus to the reform agenda, and sustain the momentum for reform.

Accordingly, the press tell us the G20 want changes to the decision-making process at the Fund. However it is unclear what, specifically, the G20's aims are after a technical rebalancing of influence at the IMF. An adjustment to voting power might reduce subjectivity in decision-making, but there are surely better ways to introduce objectivity. No doubt the Australian chair of the G20 will explain further, to take the important matter forward.

Not Urgent

Global energy is a new item for the G20's agenda, says the Australian secretariat of the G-20. It has yet to be discussed; the expectation is that Ministers and Governors will talk about some of the aspects at their meeting on 18 and 19 November 2006.

Incidentally Russia and Japan (see post below) are members of the G20.

More on territorial disputes around the world

Japanese fisherman shot.


"The four islands - called the Kurils in Russia and the Northern Territories by Japan - were seized by the Soviet army near World War II's end. Tokyo has demanded their return, and the dispute has blocked a treaty formally ending wartime hostilities.

"The islands are surrounded by rich fishing waters and are believed to have promising offshore oil and natural gas reserves, as well as gold and silver deposits."

International property rights - energy?

International property rights are not really enforceable; there is no UN army, for example. On the other hand, national law is enforceable: everything within a nation effectively belongs to it – even foreign owned property, which can be nationalised. Argentina refused to repay billions of dollars worth of loans to international lenders, and Bolivia nationalised resource extraction companies.

War between nations is still one way of seeking redress for such theft. And last month, 'Foreign Policy' published details of a handful of territorial disputes around the world. The reason for the hottest disputes is economic: the need for more resources.

But before war becomes too widespread, it is time that the rules of international ownership are rethought. An essential requirement for the energy market especially?

G20 agenda - energy

The papers presented to the G20 workshop on Demography and Financial Markets are on the official website.

However there is scarce information on the G20's research into energy, mentioned in the work programme for 2006. The programme notes that the G20 is in "a unique position" to consider this topic; nevertheless the group is willing to pass energy to a higher authority if it is found to be a global policy issue. Passing the buck?

Anyway, who is the higher authority? The United Nations and the World Trade Organisation want little to do with energy. International organisations seem reluctant to investigate this vital subject.

Assessment of changes in energy and resource commodities markets

What will G20 research find on the subject of energy, as scheduled in the work programme for 2006? The G20 is closely allied with the International Energy Forum.

From an IEF speech in June 2006:

[In addition to the Arab countries] the [IEF] Secretariat interacts [.] with other regional and inter-regional co-operative endeavour, such as the EU-GCC Eurogulf Project, the African Petroleum Congress processes, Eurasian dialogues promoted by Russia and the UNECE as well as the Conference of African, Latin American and Caribbean Energy Ministers (AFROLAC). Interacting with these processes of energy co-operation, the Secretariat has the opportunity to convey IEF global dialogue perspectives to important regional energy ambition, while taking back to our global endeavour the focus and interests of particular regions.

The World will need more and cleaner energy used in a more efficient way, accessible and affordable to a larger share of the world’s population. The challenge lies in operationalizing this imperative in a fair and sustainable way.

The challenge is huge. The US and many others will want the market to distribute energy around the world; moreover energy company shareholders will support their stance.

Introduction

The G-20 is an informal forum which promotes an open and constructive dialogue between finance ministers and central bank governors from systemically significant industrial and emerging market economies. Representing around two-thirds of the world’s population and 90 per cent of world gross domestic product, the G-20 is uniquely placed to tackle issues of significance for the international economy and monetary system. In 2006 the G-20 is being hosted by Australia. Official website

G20 Mandate

To promote dialogue and analysis. By contributing to the strengthening of the international financial architecture and providing opportunities for dialogue on national policies, international co-operation, and international economic and financial institutions, the G-20 helps to support growth and development across the globe.

G20 Membership

The members of the G-20 are the finance ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea,Turkey, the United Kingdom and the United States of America. The European Union is also a member, represented by the rotating Council presidency and the European Central Bank. To ensure global economic fora and institutions work together, the Managing Director of the International Monetary Fund (IMF) and the President of the World Bank, plus the chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank, also participate in G-20 meetings on an ex-officio basis.

The G-20 thus brings together important industrial and emerging-market countries from all regions of the world. Together, member countries represent around 90 per cent of global gross national product, 80 per cent of world trade (including EU intra-trade) as well as two-thirds of the world's population. The G-20's economic weight and broad membership gives it a high degree of legitimacy and influence over the management of the global economy and financial system. Membership

2006 Programme

The theme for Australia's host year is ‘Building and Sustaining Prosperity’. The 2006 work programme under this theme is suited to the G-20's distinctive role as a representative and effective international forum, whose workable size and consensus nature complements the activities of other international groupings and organisations.

Working closely with our colleagues, Australia will look to further the G-20’s valuable work by continuing discussion on the reform of Bretton Woods Institutions and the profound implications of demographic change. The work programme this year also includes assessment of changes in energy and resource commodities markets. Agenda