Reshaping World’s Financial System Now a Must - by Andrew C. Schneider
The West knows it can’t set the terms as it has in the past. That’s why the biggest developing nations were invited to join the G-8 in Washington on Nov. 15 for the first in a series of summits that will run well into 2009. Remaking the G-8 into something closer to the G-20 also appears likely. A large part of the reason the G-8 has been seen as increasingly irrelevant in recent years has been its exclusion of so many of the world's new stars.
Most of the economies poised to join the IMF's leadership are each worth $1 trillion or more. Two, China and Brazil, are already larger than some current members. The Group of 20, whose full membership President Bush invited to the Nov. 15 summit, comprises the G-8 countries as well as China, Brazil, India, South Korea, Mexico, Argentina, Australia, Indonesia, Saudi Arabia, South Africa, Turkey and the European Union (EU).
Note EU-Digest: "contrary to what the above Kiplinger report indicates, the major hurdle to establish stricter international regulatory rules will be to overcome the US reluctance to allow more transparency and controls over their own financial system. They have historically opposed most forms of regulatory safeguards when it appears to tamper with their own laissez-faire style of capitalism. Unfortunately we recently have seen what kind of havoc this has created in the world financial system."
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