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

Lebanese Media Unite to Support Palestinians in Gaza

Joint newscast billed as Arab world’s first unified news bulletin in support of Hamas-controlled Gaza Strip More

Photogallery Australian PM Alleges ‘Coverup’ at MH17 Crash Site

Meanwhile, Russia's ambassador to Malaysia denies plane's black boxes were opened before they were handed over to Malaysian officials More

Despite Advances in AIDS Treatment, Stigma Lingers

Leading immunologist tells VOA that stigma is often what prevents those infected with disease from seeking treatment 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.
Nature of Space Exploration Enters New Agei
X
Elizabeth Lee
July 20, 2014 2:36 AM
Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.
Video

Video Nature of Space Exploration Enters New Age

Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.
Video

Video Chicago’s Argonne Lab Developing Battery of the Future

In 2012, the U.S. Department of Energy’s Office of Science awarded a $120 million grant to a new technology center focused on battery development - headquartered at Argonne National Laboratory in suburban Chicago, Illinois. As VOA’s Kane Farabaugh reports, there scientists are making the next technological breakthroughs in energy storage.
Video

Video In NW Pakistan, Army Offensive Causes Massive Number of Displaced

Pakistan’s army offensive in North Waziristan has resulted in the large-scale displacement of the local population. VOA's Ayaz Gul reports from northwest Pakistan where authorities say around 80 percent of the estimated 1 million internally displaced persons [IDPs] have settled in Bannu district, while much of the remaining 20 percent are scattered in nearby cities.
Video

Video Kurdish Peshmerga Force Secures Kirkuk, Its Oil

The Kurdistan regional government has sent its Peshmerga troops into the adjacent province of Kirkuk to drive out insurgents, and to secure the area's rich oil fields. By doing this, the regional government has added a fourth province to the three it officially controls. The oil also provides revenue that could make an independent Kurdistan economically strong. VOA’s Jeffrey Young went out with the Peshmerga and filed this report.
Video

Video Malaysia Reeling: Second Air Disaster in Four Months

Malaysia is reeling from the second air disaster in four months involving the country’s flag carrier. Flight 340 vanished in March and despite an extensive search, no debris has been found. And on Thursday, Flight 17, likely hit by a surface-to-air missile, came apart over eastern Ukraine. The two incidents together have left more than 500 people dead. VOA Correspondent Steve Herman reports from Kuala Lumpur.
Video

Video Diplomatic Crisis Grows Over MH17 Plane Crash

The Malaysia Airlines crash in eastern Ukraine is drawing reaction from leaders around the world. With suspicions growing that a surface-to-air missile shot down the aircraft, there are increasing tensions in the international community over who is to blame. Henry Ridgwell reports for VOA from London.
Video

Video Undocumented Immigrants Face Perilous Journey to US, No Guarantees

Every day, hundreds of undocumented immigrants from Central America attempt the arduous journey through Mexico and turn themselves over to U.S. border patrol -- with the hope that they will not be turned away. But the dangers they face along the way are many, and as Ramon Taylor reports from the Rio Grande Valley in Texas, their fate rests on more than just the reception they get at the US border.
Video

Video Scientists Create Blackest Material Ever

Of all the black things in the universe only the infamous "black holes" are so black that not even a tiny amount of light can bounce back. But scientists have managed to create material almost as black, and it has enormous potential use. VOA’s George Putic has more.
Video

Video Fog Collector Transforming Maasai Water Harvesting in Kenya

The Maasai people of Kenya are known for their cattle-herding, nomadic lifestyle. But it's an existence that depends on access to adequate water for their herds and flocks. Lenny Ruvaga reports for VOA, on a "fog collector."

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.