Consensus on dominant issues at G20 summit

The G-20 (Group of 20) deliberations covered a wide range of areas including global energy demand, climate change, foreign aid, reforms to the International Monetary Fund and North Korea's recent nuclear test.

The meeting was held at the Hyatt Hotel in Melbourne, Australia. Demonstrations and clashes marred the opening day of the two day meeting of finance ministers and central bankers from the world’s richest countries. Australian Treasurer Peter Costello who chaired the forum said that it was the most important economic gathering Australia has ever hosted or ever would host.

The G-20 is a group consisting of 19 of the world's largest economies, together with the European Union. The membership of the G-20 comprises the finance ministers and central bank governors of the G-7, 12 other key countries, and the European Union Presidency (if not a G-7 member); the European Central Bank; the Managing Director of the International Monetary Fund; the Chairman of the IMFC; the President of the World Bank; and the Chairman of the Development Committee. Mr. Peter Costello, Treasurer of the Commonwealth of Australia, is the current chairperson of the G-20.

The communique issued at the end of the two-day summit stated that, “enhancing global trade by strengthening markets and ensuring sustainability by promoting investment and encouraging efficiency are the best ways to deliver lasting resource security."

The delegates agreed that trade and investments were fundamental to global security. The discussions centered on progress on reforming the World Bank and the International Monetary Fund so that they better represented large Asian countries like India and China.

The forum admitted that rising protectionism and the failure to conclude the Doha round of trade talks posed serious threats to the world economy. The ministers and governors reiterated the need for further trade liberalization in the current WTO round and called for its early resumption.

The group highlighted the danger of inflation world over. It urged that ongoing adjustments to monetary and fiscal policies should be undertaken to control inflation. It also advised the nations to ensure appropriate exchange rate flexibility. Signs of tension over currency policies emerged on currency flexibility in China which critics have complained keeps its yuan too low to boost its exports.

The G20 meeting was one of the three important international talkfests in recent days. It has not ended inconclusively but the agenda on hand was too vast and big as in the case of the Asia-Pacific Economic Co-operation meeting in Hanoi.