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(HERALD) Mbeki urges IMF, World Bank reform KLEINMOND,(South Africa).

Mbeki urges IMF, World Bank reform KLEINMOND,(South Africa).

South African President Thabo Mbeki yesterday urged reform for both the IMF and World Bank at G-20 meeting, telling delegates they should stop putting minority interests first.

"Clearly, for the global community equally to enjoy prosperity, we need this new model of engagement which actively seeks to break deadlocks, sometimes age-old, which frustrate global economic and social development and the eradication of poverty," he said.

"This model must celebrate rather than scorn diversity. It must insist on longer-term collective gains in preference to the shorter-term interests of a few."

South Africa’s support for Strauss-Kahn’s candidacy came on condition that the developing world’s representation in the 185-nation IMF be significantly increased.

South Africa’s Finance Minister Trevor Manuel told journalists the gathering had seen a "very deep and challenging discussion on commodity prices. What we didn’t do was to beat up on oil producers," he said.

"There was discussion on choices in biofuels ... a better energy mix and the impact of that on climate change.

"The key question is adequate supply of crude. And there might not be sufficient investment in refining capacity."

The two-day G20 meeting was the first to be hosted by an African country and the first to hold talks with the new heads of the World Bank and International Monetary Fund (IMF); Robert Zoellick and Dominique Strauss-Kahn.

The meeting saw talks on the need for reform for both of institutions, with Manuel saying discussions were "very candid."

On the current credit crunch also hitting financial markets, the G20 ministers said there should be greater effectiveness in financial supervision and risk management.

The statement also said the G20 countries were "committed to working with trade authorities to reach a rapid and successful conclusion to Doha," the stalled round of global trade talks.

The G20 represents nearly 90 percent of the world economy and two thirds of its population and trade.

It includes the wealthy G7 nations — the United States, Germany, Japan, France, Italy, Britain and Canada — as well as the European Union, Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea and Turkey. — AFP.

Labels: IMF, THABO MBEKI, World Bank

posted by MrK @ 9:06 AM