The International Monetary Fund has agreed to shift more voting power to developing economies from the rich world.The decision was made at the Group of 20 summit underway in Pittsburgh.
US President Barack Obama is pushing for a crackdown on the risky behaviour of banks. The US agenda also calls for rebuilding the global economy. German Chancellor Angela Merkel has come to the summit with her top priority the urgent need for market regulation. The role of the G-20 for coordinating economic policy now makes it more important than the G-7 or G-8 groupings which have long dominated the world economy. US Treasury Secretary Timothy Geithner said he expects to leave the two-day meeting with a firm schedule for implementing reform. “My own sense is we have a strong consensus on the basic framework of objectives but we worked very hard in the last weeks and months to get countries to agree to a set of objectives and timetable to put these reforms in place.” There is broad consensus at the the G-20 summit that tougher and coordinated regulation is needed to avoid a repeat of the current crisis that has left millions jobless and cost hundreds of billions of euros to prop up a staggering world economy.