“There are some huge wins for China in this agreement,” Standard Chartered Bank economist Stephen Green said after the summit ended. “Now, more than ever, wins for the global economy are wins for China, and their mutual dependence has never been clearer.”
The G20 statement supports even-handed IMF economic surveillance, calls for merit-based appointments of IMF and World Bank heads, and pledges to hasten reforms to make both agencies more representative. BRIC (Brazil, Russia, India & China) finance ministers had called for these changes at their March meeting in London.
Besides the push to improve financial regulation and accelerate IMF governance reforms, the G20’s plan to inject more than $1 trillion into the world economy through the IMF and trade finance programs will probably help stabilize demand for Chinese exports, said Green.
See also past CDT posts on the G-2o summit.
(Image of 2008 BRIC leaders courtesy of Wikimedia.)