Leadership (Abuja)
Justus Nduwugwe With Agency Report
11 November 2008
Brazilian Finance Minister, Guido Mantega, has disclosed that officials from some developing nations, last Sunday, suggested the U.S. and other countries where the current crisis started should reimburse emerging economies for financial losses suffered when foreign investors dumped assets in recent months.
Interestingly, most developed economies concluded that major bailout packages in the U.S., Europe and elsewhere have so far failed to re-establish the credit lines and confidence needed to ease the crisis, making additional measures necessary, Mantega said.
Meanwhile, finance ministers and central bank presidents from 20 leading nations also agreed Sunday to boost emerging economies' role in negotiations to overhaul the international financial system.
According to information received from 'Our World Not For Sale' and Associated Press, the G-20 ministers meeting in Sao Paulo, this weekend, also agreed that their nations must take coordinated action to ease the crisis and improve international financial regulation, but they approved no final plans to do so.
Furthermore, top officials said the Group of 20, which includes both wealthy and developing nations, should be given greater responsibility in drafting rules to prevent future economic melt-downs. But they did not address a French proposal that would add several large emerging economies to the influential Group of Eight industrialised nations.
Brazil, Russia, India, China and other developing countries say the global financial system drawn up by rich nations in the 1940s has failed to prevent economic crisis, fueling their argument that they should be given a role in crafting a new solution.
AP also said that China on Sunday announced $586 billion in infrastructure and public welfare spending to slow the crisis's impact on the world's fourth-largest economy.
On the other hand, Brazil has sold billions of dollars in reserves and loans from state banks to prop up its currency and provide credit to fund-starved companies, but is also willing to increase public spending if needed, Mantega said.
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