News / Economy

G20 Divisions Between Rich and Developing Countries Could Hamper Agreement

Multimedia

G20 Finance Ministers meet in France Friday and Saturday to seek agreement on a framework for stabilizing the global economy.  But large divisions among rich and developing nations may make finding common ground difficult.

The contrast between rapid growth in emerging economies versus sluggish recovery and high unemployment in many developed nations is expected to play a prominent role in discussions as economic ministers from the Group of 20 industrialized and developing nations gather in Paris.


Economist Chris Williamson says two key challenges are likely to dominate. "The first is the old story of the global imbalances and in particular, China's surplus and U.S. deficit.  The second is, as it has already been flagged up - the big commodity argument and whether speculation on commodities should be curbed," he said.

A debate is already underway between commodity producers and consumer nations over proposed regulations aimed at taming soaring food costs.

And as in previous summits, tensions over currency exchange rates between Washington and Beijing remain high.

U.S. officials maintain that China deliberately undervalues its currency to gain an edge in exports. But other countries, including Brazil accuse the U.S. of doing the same, using its monetary policy of quantitative easing to devalue the dollar.

International economist Stefan Schneider at Deutsche Bank says the ongoing feuds make agreement on a new global framework very unlikely. "I think it will not be very successful.  One has to see that when the G20 meeting was set up during the last global economic recession - everyone shared the same song, everyone wanted to fend off recession.  But since then, the interest has diverged quite substantially," he said.

While many member countries agree consistent banking standards and tougher regulations might prevent another crisis, there are disagreements on how individual countries should be monitored.

But French Economy Minister Christine Lagarde says the focus on recovery and sustainable growth worldwide is something about which all nations can agree. "It's going to be about improving the international monetary system.  It's going to be about bringing a bit of transparency, proper information and appropriate regulation in the field of commodities and derivative commodities.  It will be about making sure that the financial regulations are enforced throughout, properly in a coordinated and consistent fashion," she said.

How coordinated and how consistent, remains in doubt.

Despite the G20's stated goal to develop new guidelines to rebalance the global economy and prevent another crisis, experts say such an agreement is unlikely in the near future.

You May Like

Video Obama to Send 3,000 Troops to Liberia in Ebola Fight

At Centers for Disease Control and Prevention, President says US will take leadership role for a global response to deadly Ebola virus that is ravaging West Africa More

Video China Muslims Work to Change Perceptions After Knife Attacks

Muslims in Kunming say that they condemn the violence, it is not a reflection of the true beliefs of their faith More

Humanitarian Aid, Equipment Blocked in Cameroon

Move is seen as a developing supply crisis in West Africa More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Enviropreneur Seeks to Save the Environment, Empower the Communityi
X
September 16, 2014 2:06 PM
Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video Enviropreneur Seeks to Save the Environment, Empower the Community

Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Americans' Reaction Mixed on Obama Strategy for Islamic State Militants

President Barack Obama’s televised speech on how the United States plans to “degrade and destroy” the group known as the Islamic State reached a prime-time audience of millions. And it came as Americans appear more willing to embrace a bolder, tougher approach to foreign policy. VOA producer Katherine Gypson and reporter Jeff Seldin have this report from Washington.
Video

Video Authorities Allege LA Fashion Industry-Cartel Ties

U.S. officials say they have broken up crime rings that funneled tens of millions of dollars from Mexican drug cartels through fashion businesses in Los Angeles. Mike O'Sullivan reports that authorities announced nine arrests, as 1,000 law enforcement agents fanned out through the city on Wednesday.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7722
JPY
USD
107.08
GBP
USD
0.6171
CAD
USD
1.1041
INR
USD
61.075

Rates may not be current.