information has been reproduced as part of our database, it
does not constitute any endorsement
from ISRIA. To know the exact origin
of this information, click on 'view
original source' at the end of the page.
Communiqué of the Meeting of Finance Ministers and Central Bank Governors
Gyeongju, Korea, October 23, 2010
1. We, the G20 Finance Ministers and Central Bank Governors,
met with a sense of urgency to fully address the economic challenges
facing us today in preparation for the Seoul Summit.
2. The global
economic recovery continues to advance, albeit in a fragile
and uneven way. Growth has been strong in many emerging market
economies, but the
pace of activity remains modest in many advanced economies. Downside risks
remain and are different from country to country and region to region. Yet,
given the high interdependence among our countries in the global economic
and financial system, uncoordinated responses will lead to worse
outcomes for everyone.
Our cooperation is essential. We are all committed to play our part in achieving
strong, sustainable and balanced growth in a collaborative and coordinated
way. Specifically, we will:
- pursue structural reforms to boost and sustain
global demand, foster job creation and increase growth potential;
complete financial repair and regulatory reforms without delay;
- in advanced
countries, formulate and implement clear, credible, ambitious and growth-friendly
medium-term fiscal consolidation plans in line with the
Toronto Summit commitments, differentiated according to national circumstances.
We are mindful of the risks of synchronized adjustment on the global
recovery and of the risks that failure to implement consolidation,
necessary, would undermine confidence and growth;
- continue with monetary policy
which is appropriate to achieve price stability and thereby contributes
to the recovery;
- move towards more market determined
exchange rate systems that reflect underlying economic fundamentals and
refrain from competitive devaluation of currencies.
Advanced economies, including those with reserve currencies, will be
vigilant against excess volatility and disorderly movements
in exchange rates. These
actions will help mitigate the risk of excessive volatility in capital
flows facing some emerging countries. Together, we will reinvigorate
to promote a stable and well-functioning international monetary system
and call on the IMF to deepen its work in these areas. We welcome
the IMF's work
to conduct spillover assessments of the wider impact of systemic economies'
- continue to resist all forms of protectionist measures and
seek to make significant progress to further reduce barriers
to trade; and
- strengthen multilateral cooperation
to promote external sustainability and pursue the full range of policies
conducive to reducing excessive imbalances
and maintaining current account imbalances at sustainable levels. Persistently
large imbalances, assessed against indicative guidelines to be agreed,
would warrant an assessment of their nature and the root causes
to adjustment as part of the Mutual Assessment Process, recognizing
the need to
take into account national or regional circumstances, including large
commodity producers. To support our efforts toward meeting
these commitments, we call
on the IMF to provide an assessment as part of the MAP on the progress
toward external sustainability and the consistency of fiscal,
sector, structural, exchange rate and other policies.
3. Building on the success
of the Toronto Summit, the Framework for Strong, Sustainable and Balanced
Growth was refined, with the mutual assessment process
carried out at country-level to tackle both short and medium term challenges.
Informed by the IMF, the World Bank, the OECD, the ILO and other international
organizations' analyses, the Framework provided a solid and practical platform
for international cooperation to take place. In response to the tough challenges
facing the global economy, we are developing a comprehensive action plan
to mitigate risks and achieve our shared objectives. We will
submit this action
plan for consideration by our Leaders at the November 2010 Seoul Summit.
Recognizing the benefits of the Framework, we agreed to recommend
to Leaders that the country-led
and consultative Framework process should continue beyond the Seoul Summit.
We have made significant strides since the adoption of the Action Plan to
Implement Principles for Reform at the Washington Summit in November
with support from the FSB. We are committed to take action at the national
and international level to raise standards, so that our national authorities
implement global standards consistently, in a way that ensures a level playing
field and avoids fragmentation of markets, protectionism and regulatory arbitrage.
To build a stronger global financial system, we have agreed to prioritize
the following issues on the agenda for the Seoul Summit:
- Welcome and commit to
fully implement within the agreed timeframe the new bank capital and
liquidity framework drawn up by the Basel Committee and the
Governors and Heads of Supervision.
- Endorsement of the FSB's recommendations
to increase supervisory intensity and effectiveness.
- Endorsement of the policy framework, work processes and
timelines proposed by the FSB to mitigate the risks posed by Systemically
Institutions and address the 'too-big-to-fail' problems.
- Commitment to implement
all aspects of the G20 financial regulation agenda, in an internationally
consistent and non-discriminatory manner, including the
commitments on OTC derivatives, compensation practices and accounting
standards and FSB principles on reducing reliance on credit
work on macro-prudential policy frameworks, including tools to help mitigate
the impact of excessive capital flows; the reflection of the perspective
of emerging market economies in financial regulatory reforms, including
through increased outreach; commodity derivative markets; shadow
banking; and market
- Pursue our work decisively to tackle Non-Cooperative Jurisdictions.
have reached agreement on an ambitious set of proposals to reform the IMF's
quota and governance that will help deliver a more effective, credible
and legitimate IMF and enable the IMF to play its role in supporting the
operation of the international monetary and financial system.
These proposals will deliver
on the objectives agreed in Pittsburgh and go even further in a number of
areas. Key elements include:
- shifts in quota shares to dynamic EMDCs and to underrepresented
countries of over 6%, while protecting the voting share of the poorest,
which we commit
to work to complete by the Annual Meetings in 2012.
- a doubling of quotas, with
a corresponding roll-back of the NAB preserving relative shares, when
the quota increase becomes effective.
- continuing the dynamic
process aimed at enhancing the voice and representation of EMDCs, including
the poorest, through a comprehensive review of the formula
by January 2013 to better reflect the economic weights; and through completion
of the next regular review of quotas by January 2014.
- greater representation
for EMDCs at the Executive Board through 2 fewer advanced European chairs,
and the possibility of a second alternate for all multi-country
- moving to an all-elected Board, along with a commitment
by the Fund's membership to maintain the Board size at 24 chairs, and
following the completion of the
14th General Review, a review of the Board's composition every 8 years.
We welcomed the recent reform of the IMF lending facilities, including the
enhancement of the Flexible Credit Line and the establishment of the Precautionary
Credit Line to strengthen the global financial safety nets. We call on the
IMF to continue its work to further improve the global capacity to cope with
shocks of a systemic nature.
7. We look forward to the multi-year action plan
of the G-20 Working Group on Development to promote inclusive and sustainable
economic growth and resilience
in developing countries. We are committed to meeting the Millennium Development
Goals by 2015 and will reinforce our efforts to this end, including through
the use of the Official Development Assistance. We reaffirm our commitment
to an ambitious replenishment of the World Bank's International Development
Association. We welcomed the progress of the Global Agriculture and Food
Security Program in rapidly scaling up agriculture assistance
in several developing
countries and invite further contributions.
8. We welcomed a set of actions
identified to improve access to financial services for the poor and SMEs.
We welcomed the strong response to the SME Finance Challenge
and look forward to the announcement of the innovative winning entries at
the Seoul Summit. We agreed to develop a funding framework to
support the effective
implementation of the winning proposals of the SME Finance Challenge. We
agreed that a global consultative mechanism is needed to maximize
the impact of the
work on financial inclusion and enhance coordination amongst different initiatives
9. We noted the progress made on rationalizing and phasing
out inefficient fossil fuel subsidies and promoting energy market transparency
and agreed to monitor and assess progress towards this commitment at the
10. Recognizing the importance of enhancing public-private partnership
to promote economic growth beyond the crisis, we welcome the work done by
the 12 Seoul
G20 Business Summit Working Groups.
11. We thanked Korea for hosting the Finance
Ministers and Central Bank Governors meetings this year and welcomed France
as chair in 2011.
view original source
Obama | NATO | IMF | Kosovo | Russia | Korea | Afghanistan | Iran | ASEM
© Copyright 2010 - ISRIA -
all rights reserved - Established 2004