Finance leaders of the Group of 20 (G20) agreed yesterday to improve policy coordination and work toward balanced and sustainable growth, according to a communiqué released after their weekend meetings in Xianghe, north China's Hebei Province.
The finance ministers and central bank governors said they welcomed the ongoing expansion of the world economy, while recognizing that there was low growth and increasing poverty in some developing countries.
"We also emphasize that the risk of long lasting high and volatile oil prices, widening global imbalances and rising protectionist sentiments could exacerbate uncertainties and aggravate global economic and financial vulnerabilities," the communiqué said.
It said the G20 was determined to implement the necessary fiscal, monetary and exchange rate policies, and accelerate structural adjustments to resolve imbalances and overcome risks.
The finance leaders agreed to enhance cooperation on dealing with volatile oil prices, which could increase inflationary pressures, slow down growth, and cause instability in the global economy.
They stressed the need to increase oil investment, production and refining capacity, and vowed to enhance dialogue between oil suppliers and consumers.
They also stressed the importance of promoting energy conservation and efficiency, including adopting and transferring new technologies, developing alternative and renewable energy sources, and reducing subsidies on oil products.
The G20, which comprises the Group of Seven and leading emerging nations such as China, India and Brazil, agreed that successful talks on the WTO's Doha Development Agenda was critical for ensuring globalization benefits all countries.
They urged all parties concerned to provide the necessary political impetus to promote trade liberalization, fight protectionism, and make real progress at the WTO Ministerial Conference to be held in Hong Kong later this year.
The G20 finance chiefs acknowledged the Bretton Woods Institutions (BWIs) have made significant contributions to growth and development, and the improved functioning of the international monetary system.
However, they said the evolution of the international economy and global financial markets requires a continuing review of the representation, operations, and strategies of the BWIs.
In the communiqué, the finance officials said they were concerned that a number of developing economies may not be able to attain UN Millennium Development Goals without substantial additional support.
(China Daily October 17, 2005)
