(AP)—ECONOMIC GROWTH: Support economic activity until recovery is assured. Finance ministers will develop coordinated exit strategies from stimulus efforts at appropriate time.
NEW ROLE FOR G-20: G-20 will replace the G-8 as the main forum for coordinating global economic policy. The G-20 includes rapidly industrializing nations such as China, India and Brazil that are not part of the wealthier G-8.
MORE REGULATION: Improve the regulation, functioning and transparency of financial and commodity markets “to address excessive commodity price volatility.” Financial institutions “must be subject to consistent, consolidated supervision and regulation with high standards.”
BONUS PAYMENTS: Tie bank executives’ pay more closely to long-term performance of their investment decisions. Discourage guaranteed multi-year bonuses, which encourage risky investments.
TAX HAVENS: Maintain momentum “in dealing with tax havens, money laundering, proceeds of corruption, terrorist financing and prudential standards.” Improve tax transparency and exchange of information among governments.
TRADE: Oppose protectionism. Swiftly implement the $250 billion trade finance initiative. Oppose new barriers to investment or to trade in goods and services.
FOSSIL FUELS: Phase out inefficient fossil fuel subsidies and push toward investment in cleaner energy sources. “Spare no effort” to get a global warming agreement passed in Copenhagen, Denmark in December.
BALANCED GROWTH: Take steps to ensure “strong, sustainable and balanced growth” and to build a stronger international system. Monitor economic policies to pursue sustainable patterns that don’t rely heavily on huge exports from a few countries and huge consumption by a few others.
POOR PEOPLE: Through the World Bank and regional development banks, take steps “to increase access to food, fuel and finance among the world’s poorest while clamping down on illicit outflows.”
BANK CAPITAL: Improve the quantity and quality of bank capital and “discourage excessive leverage.”
GRADING G-20 EFFORT TO SAVE ECONOMY: “It worked.”
About Post Author
