Energy Planning Policies

World Bank

Among the points which would have reached a consensus would be giving more money to the International Monetary Fund to improve the representation of emerging countries and control tax havens, among other issues. As expected, IMF reform passes provide it with more resources and powers. In economic terms, will be an additional effort by duplicating the resources to 500,000 million dollars to secure more aid to poor and emerging countries, the latter responsible for 70% of global growth. Financial aid can still reach 750,000 million dollars, according to official sources quoted by Reuters. The European Union and Japan give a loan of 100,000 million euros. The same amount will bring the United States.

The Fund may be financed in international markets and may even sell gold. The key points of the event range from the necessary actions to recover the economy world from cutting interest and increased public spending, the strengthening of the international regulation of financial institutions, with decisive action on hedge funds and tax havens. At this point, you create a new agency for regulation and supervision of hedge funds. Thus, it is intended to be under public control. Germany and France had requested that this regulation does not stay on a general principle and had requested more harshly in this regard. The reform also takes into account other international organizations, in addition to the IMF, who identify themselves as pillars out of the crisis: the World Bank (WB), the Financial Stability Forum (FSF) and the World Trade Organization (WTO .) According to the draft, the FSF would become a board of financial stability with a permanent structure to make it the “world policeman of markets and financial institutions.” The Bank should give more and be invited, like other entities regional development bank, to increase its lending capacity from 200,000 to 300,000 million dollars for the period 2009-2011.

And to the WTO, the G20 will encourage the organization to end the cycle of the Doha liberalization and to monitor countries to introduce new trade barriers. A Brown’s news conference will announce the final communique of this summit, which began marked by differences in approach between U.S. and European countries, notably France and Germany concerning the best way to cope with the worst crisis economy since the Second World War. Important point is that the U.S. President, Barack Obama, yesterday admitted responsibility for his country in the origin of the financial earthquake, but played down the differences between different countries and said to be agreement emerging from the recession and re-found global financial architecture. Overall, Obama wants the public to further stimulate the economy, an idea supported by the British Prime Minister Gordon Brown. However, France and Germany say they “speak with one voice” in its position of resistance to these measures. French President Nicolas Sarkozy, bet, like its German counterpart, Angela Merkel, for the regulation of hedge funds and the monitoring of executive compensation.

This entry was posted in General and tagged . Bookmark the permalink.

Comments are closed.