This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8274046.stm

The article has changed 36 times. There is an RSS feed of changes available.

Version 32 Version 33
Greater role for emerging powers Greater role for emerging powers
(19 minutes later)
The G20 group of leading and emerging economies is to take on a new role as a permanent body co-ordinating the world economy, a White House statement said.The G20 group of leading and emerging economies is to take on a new role as a permanent body co-ordinating the world economy, a White House statement said.
It will take on the role previously carried out by the developed powerhouses of the G8 group.It will take on the role previously carried out by the developed powerhouses of the G8 group.
The G20 is meeting in the US city of Pittsburgh for a two-day summit.The G20 is meeting in the US city of Pittsburgh for a two-day summit.
EU officials also announced a deal to shift the balance of voting in the International Monetary Fund (IMF) towards growing nations such as China.EU officials also announced a deal to shift the balance of voting in the International Monetary Fund (IMF) towards growing nations such as China.
Currently, China wields 3.7% of IMF votes compared with France's 4.9%, although the Chinese economy is now 50% larger than that of France.Currently, China wields 3.7% of IMF votes compared with France's 4.9%, although the Chinese economy is now 50% larger than that of France.
WHAT IS THE G20? Set up after the Asian financial crisis in 1999 as a forum for finance ministers and central bankersFirst G20 leaders summit in 2008 to discuss response to economic crisisMembers are: Argentina, Australia, Brazil, Canada, China, EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK, USAJoined by Spain, Netherlands, International Monetary Fund and World Trade Organisation Q&A: The G20 Pittsburgh summit G20: Are promises being kept? In pictures: Leaders arrive First Spouses on Pittsburgh tourWHAT IS THE G20? Set up after the Asian financial crisis in 1999 as a forum for finance ministers and central bankersFirst G20 leaders summit in 2008 to discuss response to economic crisisMembers are: Argentina, Australia, Brazil, Canada, China, EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK, USAJoined by Spain, Netherlands, International Monetary Fund and World Trade Organisation Q&A: The G20 Pittsburgh summit G20: Are promises being kept? In pictures: Leaders arrive First Spouses on Pittsburgh tour
BBC business editor Robert Peston said that the rich nations of North America and Europe formally acknowledging that they no longer have a monopoly of wisdom on what's good for the global economy would be the most important thing to come out of this summit.BBC business editor Robert Peston said that the rich nations of North America and Europe formally acknowledging that they no longer have a monopoly of wisdom on what's good for the global economy would be the most important thing to come out of this summit.
The IMF has 186 member-states. It lends money to countries that are facing problems, but in return economic changes have to be made by those countries.The IMF has 186 member-states. It lends money to countries that are facing problems, but in return economic changes have to be made by those countries.
The IMF has been criticised in the past as being a group of developed countries trying to lay down the law to struggling, developing countries, which is why the decision to give growing nations more votes is important.The IMF has been criticised in the past as being a group of developed countries trying to lay down the law to struggling, developing countries, which is why the decision to give growing nations more votes is important.
"If you talk to the Chinese or talk to anyone from emerging markets they say the IMF doesn't have legitimacy and... we don't trust the IMF to come and rescue us in a crisis," Simon Johnson, former chief economist at the IMF told the BBC."If you talk to the Chinese or talk to anyone from emerging markets they say the IMF doesn't have legitimacy and... we don't trust the IMF to come and rescue us in a crisis," Simon Johnson, former chief economist at the IMF told the BBC.
"They don't trust it because it's US and West Europe-dominated. That's not fair... and the IMF doesn't function properly as a result.""They don't trust it because it's US and West Europe-dominated. That's not fair... and the IMF doesn't function properly as a result."
Reports also suggest that the US is seeking a reduction in the number of seats on the IMF board from 24 to 20, which could mean the UK and France lose their seats.Reports also suggest that the US is seeking a reduction in the number of seats on the IMF board from 24 to 20, which could mean the UK and France lose their seats.
'Years of low growth' 'New systems'
UK Prime Minister Gordon Brown stressed the importance of co-operation and action at the summit. UK Prime Minister Gordon Brown hailed the agreements that will be announced at the end of the summit.
G20 ANALYSIS They are sending a message that this is now the forum where the important stuff gets done. The G8 is dead Read economics editor Stephanie Flanders' blog It is endeavouring to patch up the failed framework of banking regulation rather than going for more fundamental and radical change Read business editor Robert Peston's blog The US had until now appeared to want to leave this politically tricky proposal [on bonuses] on the back burner Read North America editor Mark Mardell's blog Send us your commentsG20 ANALYSIS They are sending a message that this is now the forum where the important stuff gets done. The G8 is dead Read economics editor Stephanie Flanders' blog It is endeavouring to patch up the failed framework of banking regulation rather than going for more fundamental and radical change Read business editor Robert Peston's blog The US had until now appeared to want to leave this politically tricky proposal [on bonuses] on the back burner Read North America editor Mark Mardell's blog Send us your comments
"Without concerted action there is a danger of years of low growth and low employment," he told Sky News. "The old systems of international economic cooperation are over, new systems... have begun," he told a news conference.
"I believe that is a very important development that will reassure people that the world economy will be better prepared for all future events and will work in harmony to create the jobs and growth and prosperity that is needed for the future."
A White House statement announced the new role for the G20.A White House statement announced the new role for the G20.
"The G20 leaders reached a historic agreement to put the G20 at the center of their efforts to work together to build a durable recovery while avoiding the financial fragilities that led to the crisis," it said."The G20 leaders reached a historic agreement to put the G20 at the center of their efforts to work together to build a durable recovery while avoiding the financial fragilities that led to the crisis," it said.
"Today, leaders endorsed the G20 as the premier forum for their international economic cooperation.""Today, leaders endorsed the G20 as the premier forum for their international economic cooperation."
US Treasury Secretary Timothy Geithner said G20 countries had reached a consensus on the "basic outline" of a proposal to limit pay and bonuses by the end of 2009.US Treasury Secretary Timothy Geithner said G20 countries had reached a consensus on the "basic outline" of a proposal to limit pay and bonuses by the end of 2009.
Each country would set their own standards, he said, but that these would be overseen by the G20's Financial Stability Board - made up of central bankers and regulators.Each country would set their own standards, he said, but that these would be overseen by the G20's Financial Stability Board - made up of central bankers and regulators.
But there are G20 members that would like to see the agreement going further.But there are G20 members that would like to see the agreement going further.
German Finance Minister Peer Steinbrueck wrote in the Financial Times that a "global financial-transaction tax" of about 0.05% should be introduced.German Finance Minister Peer Steinbrueck wrote in the Financial Times that a "global financial-transaction tax" of about 0.05% should be introduced.