World leaders agree to reform IFIs, boost development

• Source: Xinhua
• [11:41 July 10 2009]
• Comments

Chinese State Councilor Dai Bingguo (1st L Back), on behalf of Chinese President Hu Jintao, poses for a family photo with leaders of the G8 countries and five other developing countries, in L'Aquila of Italy, July 9, 2009. Dai Bingguo on Thursday called for more international efforts to push for recovery of the world economy. Leaders of the G8 industrialized countries - Britain, Canada, France, Italy, Germany, Japan, Russia and the US - and six developing countries, namely Brazil, China, Egypt, India, Mexico and South Africa, met in L'Aquila on Thursday to discuss economic issues, climate change, trade and other international issues. (Xinhua/Huang Jingwen)

Leaders of the Group of Eight (G8) industrialized countries and five major developing countries agreed here on Thursday to reform financial institutions, boost development and conclude the Doha Round trade talks.

The leaders of G8 nations -- Germany, France, Italy, Britain, Japan, Russia, Canada and the United States -- and five major developing countries including India, China, Brazil, Mexico and South Africa plus Egypt reached consensus on concluding the Doha Round trade talks in 2010.

President of the European Commission Jose Manuel Barroso, together with the leaders of Egypt and Sweden were also attended the meeting.

Chinese President Hu Jintao did not attend the meetings as he cut short his stay in Italy and returned to Beijing because of a riot broke out in Xinjiang Uyghur Autonomous Region. State Councilor Dai Bingguo took part in the meetings on his behalf.

The leaders discussed a global recovery agenda for balanced, inclusive and sustainable growth, said a joint declaration after their meeting.

They pledged to "foster a macro-environment that supports a robust and balanced resumption of domestic private spending to promote the revival of demand."

While continuing to support the recovery of the world economy, they would also begin to prepare exit strategies from the extraordinary policy measures taken to respond to the crisis, to be adopted once the recovery is assured and to ensure monetary and fiscal sustainability in the medium term.

"We will refrain from competitive devaluations of our currencies and promote a stable and well-functioning international monetary system," the declaration said.

Concerned by the high social costs of the crisis in terms of unemployment and poverty, they are committed to tackle the social dimension of the crisis, putting people's concerns first.

The leaders promised to continue reforming financial system regulation and supervision to prevent boom and bust cycles and they will work to ensure propriety, integrity and transparency of international economic and financial activity.

They would encourage and facilitate the development, dissemination and mutually agreed transfer of clean, low-carbon technologies, reducing carbon emissions and increasing energy efficiency from production to consumption, thereby improving energy security and access.

They "reconfirm our political will for reaching a comprehensive, fair, effective, agreed outcome, following the principle of common but differentiated responsibilities and respective capabilities at the UN Framework Convention on Climate Change Conference in Copenhagen in December."

They vowed to continue to reform the International Financial Institutions (IFIs) mandates, scope and governance, to enhance their relevance, effectiveness, and legitimacy and improve accountability and credibility and to give emerging and developing economies, including the poorest, greater voice and representation.  The leaders agreed to conclude the Doha Round in 2010.