G20

Friday, February 23, 2007

G-20 at Davos

The G-20 was discussed at the World Economic Forum in Davos last month.

"Might the G20 become the G8 of the 21st century?"

Participants generally agreed that the G7/G8 formula representing only a small group of the world’s richest countries has outlived its usefulness

Chinese leaders believe strongly in the potential of the G20. Yu Yongding, Director, Institute of World Economics and Politics, Chinese Academy of Social Sciences, said "We want to get involved and make a contribution. We believe the G20 is very important for global governance." But China has no interest in the G8, added Yu. "We don’t want to join a rich man’s club."

But participants also agreed that the G20, which incorporates economies deemed to be of greatest significance for the international finance system, must shape a suitable infrastructure and change its current informal nature if it is to develop into a genuine global institution. It will need to create permanent mechanisms, said Charles H. Dallara, Managing Director, Institute of International Finance (IIF), USA. "There are limits to what the G20 can do without a headquarters," said Kenneth Rogoff, Thomas D. Cabot Professor of Public Policy and Professor of Economics, Harvard University, USA. "It can’t expand what it is doing much if you don’t have a structure or a secretariat."

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