Experts: hard task of increasing voice for developing economies

Special Report:Global Financial Crisis

BEIJING, April 22 -- Difficult negotiations are expected to implement the commitments of the G20 London Summit on reforming the international financial system.

Professor Jin Canrong, Associate Dean of School of International Studies of Renmin University, hailed the Summit for baring significant fruits on issues such as more resources to international financial institutions like IMF to enable them to help countries cope with the crisis, stronger international financial regulation, more voice of developing countries and the most important, the spirit of cooperation shown by world leaders.

Everyone has got what they had wanted --- at least on ***, said Prof. Zhao Xijun, Deputy Director of School of Finance of Renmin University. The EU got stricter international financial regulation, the US got stimulus packages, and developing countries got the international financial system reform and opposition against protectionism.

However, all expect very hard negotiations on details of the document. "I don't' think the US would let any outsiders even international organizations supervise the government or the US market," said Prof. Jin.

Prof. Zhao pays more attention to the issue of increasing the representation of developing countries in the IMF and World Bank. Regarding the acceptance of proposals of developing countries at the Summit as a positive signal, he pointed out that developing countries still need to persuade the developed group that the world will not get out of the crisis without the support of developing countries.

Jin and Zhao agree that the G20 Summit has shown progress on giving developing countries more say. However, Jin thinks there is still a long way to go before developing countries can enjoy the equal footing with the developed members.

Prof. Zhao believes that the financial crisis has helped to bring developed and developing countries together because both have realized that they need each other in tackling the crisis. But how much quotas will go to developing countries is still a big question.

Another question is the selection of directors to the IMF and World Bank. Although the Summit declaration promises a transparent procedure for the selection, Zhao said it took time for world leaders to come up with details of that procedure.

With the expansion of IMF's resources tripled to 750 billion USD as a result of the Summit, Zhao believes that the IMF would do a better job than ever in helping countries deal with crisis.

But that can be achieved only when the IMF makes necessary reforms, including spending less time on negotiations on the conditions of its bail-out and more improving the efficiency of governance of IMF through reform.

There will be disputes over how much money each country can get from the IMF, according to Jin.

No matter how much disagreement there will be, one thing is sure. The future of the G20 depends on how successful it can be on dealing with the current global crisis.

(Source: People's Daily Online)