ID :
26215
Thu, 10/23/2008 - 23:28
Auther :
Shortlink :
https://www.oananews.org//node/26215
The shortlink copeid
South Korean President Lee invited to financial summit of G20 leaders
(ATTN: CHANGES slug, headline, lead; UPDATES with more details, background throughout)
By Hwang Doo-hyong
WASHINGTON, Oct. 22 (Yonhap) -- South Korean President Lee Myung-bak has been invited to the financial summit of leaders of the world's 20 most advanced and major developing countries 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 members are South Korea, Argentina, Australia, Brazil, Canada, China, France,
Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South
Africa, Turkey, the United Kingdom, the U.S., and the European Union, Perino
said.
The G20 summit is an extension of the G20 finance ministers' meeting established
in 1999 to tackle the Asian financial crisis.
White House deputy press secretary Tony Fratto said he looks forward to South
Korean President Lee's contribution to the financial summit.
"He spent some of his career in business and understands these issues very well
and has a great deal of insight," Fratto said. "I know from conversations he has
had with President Bush."
Fratto said Lee and Bush likely will discuss the pending free trade agreement in
the "first serious" financial summit to address ways to promote free trade as
well as "the underlying causes of the financial crisis."
"One of our top priorities is to get the U.S.-South Korea FTA passed," he said,
noting that the pact is the biggest for the U.S. since the North American Free
Trade Agreement that went into effect in early 1990s. It is "a large and very
important trade agreement for the U.S. within, and for South Korea also."
He said they will also discuss "trade in general," such as the Doha round
multilateral trade negotiations, which faltered earlier this year because
advanced countries were reluctant to cut farm subsidies and China, India, Brazil
and other developing economies resisted pressure for substantial tariff
reductions on manufactured goods.
China, India, Brazil are among the G20 financial summit participants, spawning
hopes for revival of the Doha talks.
Their and South Korea's inclusion in the summit comes amid criticism that the G8
summit of advanced economies is not enough to quell the ongoing financial crisis
in the closely intertwined global economy.
China's foreign exchange reserves have reached nearly US$2 trillion and the
reserves of South Korea and India surpassed $200 billion and $300 billion,
respectively, with a greater portion being U.S. treasury bonds, which could
possibly destabilize the value of the currency and the credibility of the U.S.
amid its huge trade and budget deficits.
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 has legislated a provision of up to US$700
billion in bailout measures for the crippled U.S. financial industry. Other
governments followed suit by announcing measures to provide liquidity and
guarantee deposits to stabilize their own volatile markets.
Speculation abounds that the leaders of the world's major economies could discuss
the creation of a new financial regime such as the Bretton Woods system, which
was launched soon after the end of World War II and was 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."
Perino said 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 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.
hdh@yna.co.kr
(END)
By Hwang Doo-hyong
WASHINGTON, Oct. 22 (Yonhap) -- South Korean President Lee Myung-bak has been invited to the financial summit of leaders of the world's 20 most advanced and major developing countries 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 members are South Korea, Argentina, Australia, Brazil, Canada, China, France,
Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South
Africa, Turkey, the United Kingdom, the U.S., and the European Union, Perino
said.
The G20 summit is an extension of the G20 finance ministers' meeting established
in 1999 to tackle the Asian financial crisis.
White House deputy press secretary Tony Fratto said he looks forward to South
Korean President Lee's contribution to the financial summit.
"He spent some of his career in business and understands these issues very well
and has a great deal of insight," Fratto said. "I know from conversations he has
had with President Bush."
Fratto said Lee and Bush likely will discuss the pending free trade agreement in
the "first serious" financial summit to address ways to promote free trade as
well as "the underlying causes of the financial crisis."
"One of our top priorities is to get the U.S.-South Korea FTA passed," he said,
noting that the pact is the biggest for the U.S. since the North American Free
Trade Agreement that went into effect in early 1990s. It is "a large and very
important trade agreement for the U.S. within, and for South Korea also."
He said they will also discuss "trade in general," such as the Doha round
multilateral trade negotiations, which faltered earlier this year because
advanced countries were reluctant to cut farm subsidies and China, India, Brazil
and other developing economies resisted pressure for substantial tariff
reductions on manufactured goods.
China, India, Brazil are among the G20 financial summit participants, spawning
hopes for revival of the Doha talks.
Their and South Korea's inclusion in the summit comes amid criticism that the G8
summit of advanced economies is not enough to quell the ongoing financial crisis
in the closely intertwined global economy.
China's foreign exchange reserves have reached nearly US$2 trillion and the
reserves of South Korea and India surpassed $200 billion and $300 billion,
respectively, with a greater portion being U.S. treasury bonds, which could
possibly destabilize the value of the currency and the credibility of the U.S.
amid its huge trade and budget deficits.
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 has legislated a provision of up to US$700
billion in bailout measures for the crippled U.S. financial industry. Other
governments followed suit by announcing measures to provide liquidity and
guarantee deposits to stabilize their own volatile markets.
Speculation abounds that the leaders of the world's major economies could discuss
the creation of a new financial regime such as the Bretton Woods system, which
was launched soon after the end of World War II and was 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."
Perino said 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 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.
hdh@yna.co.kr
(END)
