ID :
26157
Thu, 10/23/2008 - 14:33
Auther :
Shortlink :
https://www.oananews.org//node/26157
The shortlink copeid
Bush invites G20 leaders to financial summit By Hwang Doo-hyong
WASHINGTON, Oct. 22 (Yonhap) -- U.S. President George W. Bush Wednesday invited leaders of the world's 20 most advanced and major developing countries to a summit in mid-November to discuss ways to tackle the ongoing global financial meltdown, the White House said.
"Today, the President is inviting the leaders of the Group of 20 countries to a
summit in the Washington, D.C. area, on November 15 to discuss financial markets
and the global economy," spokesperson Dana Perino said in a statement.
The call for the financial summit comes amid the subprime mortgage crisis caused
by falling housing prices that created a credit crunch and havoc not only for
U.S. financial institutions, but also for the closely intertwined global
financial market.
In recent weeks, the U.S. government legislated a provision of up to US$700
billion in bailout plans for the crippled U.S. financial industry. Other
governments followed suit by announcing a series of measures to provide liquidity
and guarantee deposits to stabilize their volatile markets.
Talks abound over the possibility of the leaders of the world's major economies
discussing the creation of a new regime such as the Bretton Woods system, which
was launched soon after the end of World War II and based on fixed foreign
exchange rates buttressed by the International Monetary Fund and the World Bank.
French President Nicolas Sarkozy recently talked about the need to introduce a
new global financial regime in which financial institutions are subjected to more
regulation amid criticism that the current financial turmoil came about partly
due to failure by the U.S. government to properly regulate financial
institutions.
"The leaders will review progress being made to address the current financial
crisis, advance a common understanding of its causes, and, in order to avoid a
repetition, agree on a common set of principles for reform of the regulatory and
institutional regimes for the world's financial sectors," Perino said.
"These principles can be further developed by working groups for consideration in
subsequent summits," she said. "In addition, we expect that the leaders will
discuss the effects of the crisis on emerging economies and developing nations."
The spokesperson expected the summit will also provide "an important opportunity
for leaders to strengthen the underpinnings of capitalism by discussing how they
can enhance their commitment to open competitive economies, as well as trade and
investment liberalization."
The G20 summit is an extension of the G20 finance ministers' meeting established
in 1999 to tackle the Asian financial crisis.
The members include Argentina, Australia, Brazil, Canada, China, France, Germany,
India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South
Africa, Turkey, the United Kingdom, the U.S., and the European Union.
The managing director of the International Monetary Fund, the president of the
World Bank, the United Nations secretary-general, and the chairman of the
Financial Stability Forum will also attend the summit, Perino said.
"Today, the President is inviting the leaders of the Group of 20 countries to a
summit in the Washington, D.C. area, on November 15 to discuss financial markets
and the global economy," spokesperson Dana Perino said in a statement.
The call for the financial summit comes amid the subprime mortgage crisis caused
by falling housing prices that created a credit crunch and havoc not only for
U.S. financial institutions, but also for the closely intertwined global
financial market.
In recent weeks, the U.S. government legislated a provision of up to US$700
billion in bailout plans for the crippled U.S. financial industry. Other
governments followed suit by announcing a series of measures to provide liquidity
and guarantee deposits to stabilize their volatile markets.
Talks abound over the possibility of the leaders of the world's major economies
discussing the creation of a new regime such as the Bretton Woods system, which
was launched soon after the end of World War II and based on fixed foreign
exchange rates buttressed by the International Monetary Fund and the World Bank.
French President Nicolas Sarkozy recently talked about the need to introduce a
new global financial regime in which financial institutions are subjected to more
regulation amid criticism that the current financial turmoil came about partly
due to failure by the U.S. government to properly regulate financial
institutions.
"The leaders will review progress being made to address the current financial
crisis, advance a common understanding of its causes, and, in order to avoid a
repetition, agree on a common set of principles for reform of the regulatory and
institutional regimes for the world's financial sectors," Perino said.
"These principles can be further developed by working groups for consideration in
subsequent summits," she said. "In addition, we expect that the leaders will
discuss the effects of the crisis on emerging economies and developing nations."
The spokesperson expected the summit will also provide "an important opportunity
for leaders to strengthen the underpinnings of capitalism by discussing how they
can enhance their commitment to open competitive economies, as well as trade and
investment liberalization."
The G20 summit is an extension of the G20 finance ministers' meeting established
in 1999 to tackle the Asian financial crisis.
The members include Argentina, Australia, Brazil, Canada, China, France, Germany,
India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South
Africa, Turkey, the United Kingdom, the U.S., and the European Union.
The managing director of the International Monetary Fund, the president of the
World Bank, the United Nations secretary-general, and the chairman of the
Financial Stability Forum will also attend the summit, Perino said.
