S. Korean leader vows 'outreach' to non-G-20 members

By Lee Chi-dong
DAVOS, Switzerland, Jan. 28 (Yonhap) -- South Korean President Lee Myung-bak said
Thursday that leaders of the world's 20 major economies will explore ways to set
up a "Global Financial Safety Net" to minimize the impact on emerging countries
from abrupt flows of international capital in their gathering in Seoul later this
year.

The financial crisis that began in 2008 demonstrated the vulnerability of
developing countries to sudden reversals in the flow of global capital, he
pointed out, adding that preventive measures are urgently required.
As president of South Korea, which chairs this year's G-20 summit, Lee also
promised to step up efforts to "reach out to" non-members of what has become the
premier forum for international economic policy cooperation in an attempt to
narrow the development gap.
"I cannot emphasize enough the importance of ensuring that the fruits of strong
and sustainable growth are shared evenly among all countries, including the
poorest," he said in a special address at the annual meeting of the World
Economic Forum, commonly known as Davos Forum, held in the alpine ski resort of
the same name.
In the 15-minute speech, titled "Seoul G-20: Summit Priorities and Challenges,"
Lee unveiled his vision for the G-20 and outlined main agenda items to be
detailed at the November session in Seoul.
"At the G-20 Summit in November, we will place on the agenda the establishment of
what we call a 'Global Financial Safety Net' that can put in place a global
mechanism for addressing such sudden reversals," he said.
The new arrangement seeks to build on the successful implementation of bilateral
arrangements between central banks for dealing with sudden reversals of capital
flows, he added.
Lee said the establishment of such a financial safety net will greatly contribute
to the balanced growth of the global economy, now stricken by sharp differences
in the level of development between advanced, emerging and poorer countries.
"We will consult our G-20 partners in placing development issues firmly on the
agenda for the Seoul G-20 summit," he said. "We will not limit our discussions to
the G-20 member countries, but instead will reach out to partners outside the
G-20. We will conduct extensive outreach efforts through consultations with the
United Nations and regional bodies."
Lee stressed that South Korea will take advantage of its experience and expertise
with emerging and developing countries on formulating strategies for development.
The president announced a plan for the launch of a "Business Summit" in Seoul
just ahead of the G-20 summit to encourage the private sector, especially the
business community, to play a bigger role in maintaining momentum for a recovery
spurred by government-led stimulus measures.
lcd@yna.co.kr
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