News / Economy

G20 Divisions Between Rich and Developing Countries Could Hamper Agreement

Multimedia

TEXT SIZE - +

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

Algerians Vote in Presidential Election

There were few media reports of protests and clashes around the country, but so far no significant violence More

Sharks More Evolved than Previously Thought

The discovery could “profoundly affect our understanding of evolutionary history” More

Pakistan Military Asked to Protect Polio Workers

Request comes as authorities say a Taliban ban on vaccinations in 2012 and deadly attacks on anti-polio teams have prevented thousands of children from getting inoculated 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.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid

World Currencies

EUR
USD
0.7217
JPY
USD
102.17
GBP
USD
0.5949
CAD
USD
1.1009
INR
USD
60.326

Rates may not be current.