Friday, April 03, 2009
Just making a bullet list of all the items that developing countries and poor nations got at the 2009 G20 summit in London.
- India and other developing nations to get a greater say in the international organizations such as IMF and World Bank.
- After 2011, the US could lose its veto power at those institutions and Western countries could find their voting rights severely reduced.
- The convention that an American heads the World Bank and a European heads the IMF will also now be abandoned, the G20 leaders say.
- The G20 also created a new Financial Stability Board, incorporating all members of the G20 for the first time, to replace the current Financial Stability Forum, which mainly consists of the central banks and finance ministries of US and European countries.
Funding Pledges:
- $500bn for the IMF to lend to struggling economies
- $250bn to boost world trade
- $250bn for a new IMF "overdraft facility" countries can draw on
- $100bn that international development banks can lend to poorest countries
- IMF will raise $6bn from selling gold reserves to increase lending for the poorest countries
If IMF have more money to lend then it means that poor countries are less reliant on Western nations when they get into trouble and need aid. Poor countries will also be less reliant on the value of the US dollar because IMF has its own accounting currency, SDR, which is a basket of major currencies such as dollar, euro, yen and pound.
Source: BBC
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