Brazilian president Lula asks rich countries to set their economies in order
17 Nov 2008
Brazilian President, Luiz Inacio Lula da Silva has insisted that the current financial problems are not with the poor countries, and that the rich countries should resolve their problems first and put their houses in order so that the financial crisis does not spread to other countries.
Brazil, which currently is the rotating head of the G-20, has put the blame squarely on the world's richest countries for creating the current global crisis and president Luiz Silva said that it was their duty to resolve the crisis before it spreads to the developing world.
He also said that the super rich G8 nations was no longer significant in today's globalised world and it should be disbanded with the responsibility of developing international financial regulations going to the Group of 20.
The G-8 comprises the United States, Japan, Germany, France, Britain, Italy, Canada and Russia, and the G-20 which accounts for nearly 90 per cent of the world's GDP is comprised of nations such as India, Indonesia, Saudi Arabia, the United States, Argentina, Brazil, Britain, China, France, Germany, Italy, Canada, Japan, Australia, Mexico, Russia, South Africa, South Korea, Turkey and the EU.
Talking to reporters gathered at the summit, he said "there is no logic to making any political and economic decisions without the G20 members,'' and that developing countries must be part of the solution to the global financial crisis.
He said palliative measures won't help resolve chronic problems of the economic policy of America and the EU. The G8 as an organisation is irrelavant, he said.
He also said that the existing multilateral organisations and the international rules in place were rejected by history. Both the IMF and the World Bank should now open themselves to bigger participation of developing economies which translates into more representation and a vote for developing countries.
He was ably supported by the Indian prime minister, Manmohan Singh, himself an economist, who said that the current crisis has proved that countries which had no say in the past will have a voice henceforth.
He said that for years the emerging economic powers had been clamoring for greater say in international affairs and the time has come when they have more voice, globally.
Brazilian finance minister Guido Mantega was happy at the outcome of the Washington financial summit and said Brazil was able to achieve most of the goals it intended. ''We have reached our goal of establishing the G-20 at the presidential level, the crisis makes some things viable that weren't possible before."
This is the first time that heads of states are meeting in a G20 meeting in view of the global economic crisis. Finance ministers and central bank governors from its member countries usually meet at the G20 summit.
After the summit, Brazilian President, Luiz Silva said that he never dreamt that emerging economic powers like Brazil, China and India would be given a role in restructuring the global economy.
Luiz Silva rose from a metalworker to become the president of one of the emerging powers and he has steered the country to great growth with Brazil now rooting for a permanent seat on the UN Security Council.
