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G20 urged to coordinate for sustainable growth

0 CommentsPrint E-mail Xinhua, January 28, 2010
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South Korean President Lee Myung-bak on Thursday urged the Group of 20 (G-20) countries to set a longer-term framework for policy coordination to ensure sustained and balanced growth.

"It is time for the G-20 to set the post-crisis agenda, and to build the platform that will ensure sustained and balanced growth for the world economy in the months and years ahead," said Lee, whose country will host the next G-20 summit in November.

In a special address at the ongoing World Economic Forum, Lee said the global economy has just gone through a period of crisis and was now showing tentative signs of recovery.

"The G-20 this year will continue its efforts to overcome the consequences of the global financial crisis and to re-double its efforts in coordinating policies toward recovery," he told top business executives and government officials attending the annual gathering in the Swiss ski resort.

The president called on G-20 members to consider implementing an "exit strategy" for the unprecedented fiscal and monetary stimulus adopted by many countries to deal with the crisis.

"One of the tasks of the G-20 will be to coordinate the transition to a more normal policy stance once the appropriate conditions are in place," he said.

In addition, Lee said the group needs to follow up on initiatives adopted at previous summits to promote a more resilient global financial system, including reforming international financial institutions such as the International Monetary Fund and the World Bank.

The South Korean leader said important issues concerning financial reform include finding ways to counter the "pro-cyclical nature" of the financial system, and the problem of institutions that are "too big to fail".

Turning to the issue of trade, Lee stressed the importance for the G-20 countries to continue to resist protectionist pressures.

"We need to reaffirm the importance of continuing our stance against protectionism," he said.

Participants at the Jan. 27-31 event include more than 1,400 top-level executives from the world's leading companies, some 30 heads of state or government, more than 60 government ministers, and more than 100 top officials from international organizations and nongovernmental organizations.

Issues high on the meeting's agenda include what lessons the world should draw from the recent economic crisis, how to promote a stable recovery, the world negotiations on climate change, and the reconstruction of earthquake-ravaged Haiti.

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