G-8 nations urged to reform world financial order

July 6th, 2008 - 5:22 pm ICT by IANS  

Abu Dhabi, July 6 (IANS) An editorial comment in a leading United Arab Emirates (UAE) daily has warned the Group of Eight (G-8) nations that global financial order urgently calls for reform to avert an impending economic catastrophe, WAM reported Sunday. Leaders of the eight-member group, comprising Britain, France, Germany, Italy, Canada, the US, Japan and Russia, are holding a three-day summit to talk economy and environment and take stock of the world situation.

There is an urgent need for the most powerful economies to realise that the 21st century mandates changes in the global financial and economic order to avoid widespread discontent, the agency quoted the Khaleej Times as commenting.

“The agriculture community in the economic South (developing and poor economies) has never been too happy with the Group of Eight (G-8) countries, especially with continued subsidies harming the poor countries’ traditional comparative advantage”, wrote Khaleej Times.

The paper noted that America’s mammoth economy and consumption population, though still the most potent in the world, are registering cracks that will only deepen as emerging trends continue.

The need for fundamental reforms in the global financial system could be seen in the economic uncertainty, inflation and slowdown of world economy, the daily observed.

“The more the current ’system’ derails as recession looms large, the more the discontented producers from the Third World will feel vindicated, even though fresh developments do not favour them in any particular way,” the paper said.

“If there is one thing both parties agree on at present, it is that the global economic crisis is very serious, and the greatest care needs to be taken to avoid widespread hardship as more and more fall below the poverty line every passing day.”, the paper said.

In presenting a blueprint for charting out of these troubled waters lies the G-8’s best chance of finally gaining legitimacy that should have come its way long ago, the paper concluded.

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