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

How to Safeguard Your Mobile Privacy

As the digital world becomes more mobile, so too do concerns about eroding privacy and increased hacking More

'Desert Dancer' Chronicles Iranian Underground Dance Troupe

Film by Richard Raymond is based on true story of Afshin Ghaffarian and his friends More

Obesity Poses Complex Problem

Professor warns of obesity’s worldwide health impact 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.
Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam Wari
X
Katherine Gypson
May 25, 2015 1:32 AM
For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam War

For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Female American Soldiers: Healing Through Filmmaking

According to the United States Defense Department, there are more than 200-thousand women serving in the U.S. Armed Forces.  Like their male counterparts, females have experiences that can be very traumatic.  VOA's Bernard Shusman tells us about a program that is helping some American women in the military heal through filmmaking.
Video

Video Iowa Family's Sacrifice Shaped US Military Service for Generations

Few places in America have experienced war like Waterloo. This small town in the Midwest state of Iowa became famous during World War II not for what it accomplished, but what it lost. As VOA’s Kane Farabaugh reports, the legacy of one family’s sacrifice is still a reminder today of the real cost of war for all families on the homefront.
Video

Video On Film: How Dance Defies Iran's Political Oppression

'Desert Dancer' by filmmaker Richard Raymond is based on the true story of a group of young Iranians, who form an underground dance troupe in the Islamic Republic of Iran. This is the latest in a genre of films that focus on dance as a form of freedom of expression against political oppression and social injustice. VOA’s Penelope Poulou has more.
Video

Video Turkey's Ruling Party Trying to Lure Voters in Opposition Stronghold

Turkey’s AK (Justice and Development) Party is seeking a fourth successive general election victory, with the goal of securing two-thirds of the seats in Parliament to rewrite the constitution and change the country's parliamentary system into a presidential one. To achieve that, the party will need to win seats in opposition strongholds like the western city of Izmir. Dorian Jones reports.
Video

Video Millions Flock to Ethiopia Polls

Millions of Ethiopians cast their votes Sunday in the first national election since the 2012 death of longtime leader Meles Zenawi. Mr. Meles' party, the Ethiopian People's Revolutionary Democratic Front, is almost certain of victory again. VOA's Anita Powell reports from Addis Ababa.
Video

Video Scientists Testing Space Propulsion by Light

Can the sun - the heart of our solar system - power a spacecraft to the edge of our solar system? The answer may come from a just-launched small satellite designed to test the efficiency of solar sail propulsion. Once deployed, its large sail will catch the so-called solar wind and slowly reach what scientists hope to be substantial speed. VOA’s George Putic reports.
Video

Video FIFA Trains Somali Referees

As stability returns to the once lawless nation of Somalia, the world football governing body, FIFA, is helping to rebuild the country’s sport sector by training referees as well as its young footballers. Abdulaziz Billow has more from Mogadishu.
Video

Video With US Child Obesity Rates on the Rise, Program Promotes Health Eating

In its fifth year, FoodCorps puts more than 180 young Americans into 500 schools across the United States, where they focus on teaching students about nutrition, engaging them with hands-on activities, and improving their access to healthy foods whether in the cafeteria or the greater community. Aru Pande has more.
Video

Video Virginia Neighborhood Draws People to Nostalgic Main Street

In the U.S., people used to grow up in small towns with a main street lined by family-owned shops and restaurants. Today, however, many main streets are worn down and empty because shoppers have been lured away by shopping malls. But in the Del Ray neighborhood of Alexandria, Virginia, main street is thriving. VOA’s Deborah Block reports it has a nostalgic feel with its small restaurants and unique stores.

VOA Blogs

World Currencies

EUR
USD
0.8957
JPY
USD
120.93
GBP
USD
0.6393
CAD
USD
1.2199
INR
USD
63.470

Rates may not be current.