G-20 calls for balanced, sustainable growth
By Su Bei (China Daily)
Updated: 2005-10-17 05:43
Finance leaders of the Group of 20 (G-20) agreed yesterday to improve policy
co-ordination and work towards balanced and sustainable growth.
Concluding a weekend meeting in Xianghe, North China's Hebei Province, the
G-20 finance ministers and central bank governors said in a communique that they
welcomed the ongoing expansion of the world economy, while recognizing low
growth and increasing poverty in some developing countries.
"We also emphasized that the risks long lasting high and volatile oil prices,
widening global imbalances and rising protectionist sentiments are to the
downside and could exacerbate uncertainties and aggravate global economic and
financial vulnerabilities," the communique said.
It said the G-20 was determined to implement the necessary fiscal, monetary
and exchange rate policies, and accelerate structural adjustments to resolve
imbalances and overcome risks.
The finance leaders agreed to enhance co-operation on the issue of volatile
oil prices, which could increase inflationary pressures, slow down growth, and
cause instability in the global economy.
They stressed the need to increase oil investment, production, and refining
capacity, and vowed to enhance dialogue between oil suppliers and consumers.
They also stressed the importance of promoting energy conservation and
efficiency, including adopting and transferring new technologies, developing
alternative and renewable energy sources, and reducing subsidies on oil
The G-20, which comprises the Group of Seven members and the leading emerging
nations such as China, India and Brazil, agreed that successful talks at the
Doha Development Round of the World Trade Organization (WTO) is critical for
ensuring globalization benefits all countries.
They urged all parties concerned to provide the necessary political impetus
to promote trade liberalization, fight protectionism, and make real progress at
the WTO Ministerial Conference to be held in Hong Kong later this year.
The G-20 finance chiefs acknowledge the Bretton Woods Institutions (BWIs)
have made significant contributions to growth and development, and the improved
functioning of the international monetary system.
However, they said the evolution of the international economy and global
financial markets requires a continuing review of the representation,
operations, and strategies of the BWIs.
In the communique, the finance officials said they were concerned that a
number of developing economies may not be able to attain the Millennium
Development Goals without substantial additional support. They called on the
international community to fulfil the Monterrey Commitments and on recipient
countries to make further progress in implementing sound policies.
(China Daily 10/17/2005 page1)