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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: maceng2 who wrote (42518)	11/9/2008 5:57:36 AM
From: maceng2	Read Replies (2) \| Respond to of 217576

Brazil demands big global finance reforms 18 hours ago canadianpress.google.com SAO PAULO, Brazil — Brazil's president on Saturday demanded major reforms of the international finance system with strong input from big emerging countries because the global economy is victimizing the world's poor. Addressing finance ministers and central bank presidents from the world's 20 major economies, Silva said the planet's poor stand to lose the most from a credit crunch that has slammed businesses small and large from Brazil to China. He called on the Group of 20 nations officials gathered in Sao Paulo ahead of a Nov. 15 G20 summit in Washington "to formulate proposals for a substantial change of the world's financial architecture." "We are all paying for this adventure," said Silva, a former union leader who is Brazil's first working class president. "This system collapsed like a house of cards that dragged down with it the dogmatic faith in the principles of nonintervention by the state in the economy." The stakes for a global financial revamp are high, he said, because millions in developing nations are suffering from the worldwide credit crunch that started in the United States and Europe. In Brazil, for example, farmers are planting less soy and corporations are reducing output of products ranging from iron ore to steel and automobiles. After lending by American and European banks virtually dried up amid shattered confidence, foreign investors started dropping emerging market investments, forcing extreme measures by governments like Brazil's to prop up battered currencies and provide credit lines to companies. "Foreign investment funds are withdrawing their assets in the capital markets of emerging countries to cover the losses they sustained in advanced markets," Silva said. "This loss of funds affects balance of payments and makes it difficult for companies to finance themselves." France is suggesting bringing emerging economies on board as members of the exclusive G8 club of industrialized nations. Brazil's finance minister proposed the group be expanded to as many as 15 countries, but didn't specify which emerging-market nations besides Brazil, Russia, India and China should be allowed to join. European presidents on Friday suggested transforming the International Monetary Fund in to the world's financial watchdog, giving it more power to curb financial crises, with more money to aid countries in trouble. Brazil and other emerging-market nations have long complained they do not have sufficient representation within bodies like the IMF and the World Bank. Silva said the G20 is well-poised to help forge new international finance regulations because it has broad representation from both rich and developing countries. "We need a new, more open and participative governance. Brazil is ready to assume its responsibility. This is not the moment for narrow-minded nationalism or of individual solutions," he said. Washington supports a significant role for Brazil and other developing nations, said David McCormick, the U.S. Treasury Department's undersecretary for international affairs. Silva "presented a constructive overview of the challenges we face and the need for developed and developing nations to work together in addressing those challenges," McCormick said in a statement.