Brazil’s president has led calls for emerging economies, like that of his own country, to have a greater say in how the global economy is run. Finance ministers and central bank chiefs were meeting in Sao Paolo for G20 talks ahead of a summit of G20 heads of state next week in Washington.
Luiz Inacio Lula da Silva argued that the G20 should replace the G7 as the body that dictates global economics. He told finance officials: “The G7 group cannot control the world’s financial situation on its own any more. It’s essential that emerging nations contribute.”
The head of the World Bank suggested from the sidelines of the Sao Paolo talks that emerging economies will probably play a greater role in the financial future.
Robert Zoellick said: “People have been talking about changing the G7 and the G8 to possibly do a G20. I’ve talked about a steering group that includes a number of those countries, I think certainly you will have some group involving China, Brazil, Russia, India, Mexico, but then there are other changes too.”
Both the EU and the so-called BRIC countries of Brazil, Russia, India and China have spoken in favour of an expanded role for the International Monetary Fund. The issue is expected to arise at Saturday’s summit in Washington.