G-20 To replace G-8 as top global economic forum

IN a recognition of the growing clout of India, China and other emerging economies, the Group of 20 leaders has agreed to put the G-20 at the centre of efforts to fashion a durable global recovery while avoiding the financial fragilities that led to the current economic crisis.

The G-20 will now replace G-8 (founded in 1975) as the premier world economic grouping.

The change, signifying a shift of the world's balance of economic power, was pushed by US President Barack Obama.

As the G-20 plenary sessions began on Friday on how best to ensure and sustain the economic recovery, the summit's draft communiqué indicated that the member-countries should keep their stimulus packages in place.

Negotiators were also cited as saying that the G-20 was close to an agreement that would require members to subject their economic policies to a peer review of sorts.

For some years now, there has been a view that India and China should be included in an expanded G-8. The decision to make G-20 the top economic forum brings the two Asian giants to the high table along with Brazil, South Korea, Mexico, Australia, Indonesia, Argentina, South Africa, Turkey and Saudi Arabia.

The G-20 accounts for roughly two-thirds of the world economy (60 per cent of world population and 85 per cent of output).

The G-8 would continue to meet on matters important to the developed economies.

-From Expressbuzz