Tuesday, November 11, 2008

G20 leaders to meet on Financial Crisis

G 20 leaders will be meeting next weekend's at a summit (emergency) on how to reshape the global financial system and give greater importance to developing nations. A showdown appears to be brewing about whether broader groupings like the G20 should supplant the elite, rich-country G7 as the main forum governing the world economy.

France, which holds the rotating European Union presidency, is leading a drive for tough new regulations and oversight in financial markets.Many countries want to beef up the IMF and some want to give it a regulatory surveillance role.The United States, Britain, Canada and Australia are worried that too much regulation could restrain a free-market system and dim the prospects for economic growth.

There have also been questions as to how far such a summit would go since the host President is already on his way out, as he will handover power to Obama and aides close to Obama have disclosed that Obama would not be attending the controversial meeting.

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