Rich countries should live up to commitments

Pages280-282

Page 280

Following is the text of the communiqué issued by the finance ministers and central bank governors of the Intergovernmental Group of 24 on International Monetary Affairs and Development on September 20.

Ministers of the Intergovernmental Group of 24 on International Monetary Affairs and Development held their seventieth meeting in Dubai,United Arab Emirates, on September 20. Fuad Siniora,Minister of Finance, Lebanon, was in the chair, with Senator Conrad Enill,Minister in the Ministry of Finance, Trinidad and Tobago, as First Vice-Chair, and Paul Toungui,Minister of State, Finance, Economy, Budget, and Privatization, Gabon, as Second Vice-Chair.

The meeting of the ministers was preceded on September 19 by the eighty-second meeting of the deputies of the Group of 24, with Alain Bifani, Director-General, Ministry of Finance, Lebanon, as Chair.

Global economic prospects

Ministers observe that, notwithstanding the abatement of some of the uncertainties [about] the global economy, the outlook continues to be subject to important risks, owing to the persistent global imbalances, the slow pace of economic recovery, and the limited progress in addressing structural problems in major advanced economies. They consider that the continued heavy dependence on the United States for global growth and the large current account imbalances among the major regions create the risk of disorderly currency movements and a resurgence of protectionist pressures.

Ministers encourage the U.S. authorities to develop a medium-term framework to reverse the deterioration in the U.S. fiscal accounts. They consider that stronger fiscal and monetary stimulus measures in Europe would contribute to world recovery, while structuralPage 281 adjustments remain the key to better medium-term performance.While recognizing the tentative signs of recovery in Japan, ministers consider that stronger efforts are needed to overcome the weaknesses of the financial sector and restore public finance sustainability.

They note that progress toward macroeconomic stability and growth-oriented policies have enabled developing countries, particularly those in Asia, to contribute to sustaining world economic activity.

Ministers reiterate their call to strengthen international cooperative efforts to effectively address macroeconomic imbalances and strengthen the short- and medium-term global growth prospects. This could be achieved through ensuring a stable international economic and financial environment; scaling up assistance toward the achievement of the...

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