Pittsburgh once the powerhouse behind the US steel industry is the venue where the G20 are wrestling with the many global problems caused by the global economic downturn.How to put the world on a firmer economic footing in the future has been the major topic on the leaders agenda all agreed to keep the economic stimulus packages in place until recovery is secure. The group wants cooperation and coordination to be key along with a commitment to fiscal responsibility. President Obama has made it clear he wants to see an end to the mega bonuses picked up by bankers engaged in risky activity for short term gain. France has called for strict new rules however the US is reluctant to set fixed limits. Banks are also advised to keep hold of capital in order to allow for lending. In a boost for the devoloping nations the G20 wants to shift the voting power of the IMF by some 5 percent giving nations long under-represented in the world financial body more say. At present industrialised countries claim 57 percent of the vote while developing nations share 43 percent the move adds a certain equality to proceedings. The group agreed to phase out subsidies on oil and other fossil fuels in the “medium term” and will redouble efforts to reach a UN deal on climate change later this year. Finance ministers have been told to come up with a range of ideas for climate finance at their next meeting.
G20 and the new economic landscape