Both rich, emerging countries welcome action on global crisis

October 12th, 2008 - 9:30 am ICT by IANS  

Washington, Oct 12 (DPA) The world’s 20 leading economies have endorsed actions by wealthier nations to stem a financial crisis that has spread to much of the world.The Group of 20, a bloc that brings together developed and developing countries, committed to using “all the economic and financial tools to ensure the stability of financial markets,” in a joint statement after an emergency meeting in Washington Saturday.

“We are now facing a world crisis,” said Brazilian Finance Minister Guido Mantega, who chairs the G20. “The G20 today took steps toward more coordinated action.”

The bloc endorsed a five-point action plan adopted by the smaller Group of Seven leading economies, which Friday vowed to use “all necessary tools” to ease a financial crisis that has sent stock markets plummeting and sharply constricted the availability of credit around the world.

But Mantega said the G7 did not fit the realities of the modern economy. He called for a more active role for the G20 to give emerging countries more influence.

With some advanced economies facing a recession and others facing zero growth over the next six months, Mantegna said it was up to developing countries to keep the world economy moving.

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