Sao Paulo: Emerging nations pressed for a stronger role in global financial coordination as key officials, including from India, met on Sinday in Sao Paulo to lay the groundwork for next week’s Washington summit on the deepening economic crisis.
Leaders from the main industrialized and emerging economies gathered under the auspices of the Group of 20, which many officials say should become a stronger body that could supplant the Group of Seven wealthy nations that currently serves to coordinate key global policies.
The calls for a broader multilateral response came despite caution by Washington, where a lame-duck administration of President George Bush has been noncommittal ahead of the transition to president-elect Barack Obama, who assumes office in January.
Opening the gathering, Brazilian President Luiz Inacio Lula da Silva told finance ministers and central bankers that a “new world financial architecture” is needed to coordinate the response to a deepening crisis.
“It’s time for a pact between governments for creation of a new world financial architecture. This is a global crisis and it demands global solutions,” Lula said.
He said nations struggling with the crisis must “avoid temptations to take unilateral measures,” and stressed that “new universal mechanisms are needed” that have to be worked out in concert.
European leaders have said they hope the Sao Paulo meeting will lay the groundwork for the start of key reforms to be put in motion starting with a 15 November summit in Washington of G20 leaders.
The emerging nations meanwhile are demanding a seat at the table in global economic policymaking. The top emerging economies - Brazil, Russia, India and China - want “a reorganisation of the world financial system,” Brazilian Economy Minister Guido Mantega told reporters on Saturday.