Maravi

(HERALD) G7 states call for ‘new world economic order’

G7 states call for ‘new world economic order’
AFP.

ROME. THE world’s richest nations called on Saturday for urgent reform of global finance to save the world from the economic devastation that is dragging more and more countries into recession.

Italy’s Finance Minister called for a "new world economic order" as he wrapped up the crisis summit of finance leaders from the Group of Seven leading economies here.

In a joint declaration, the G7 called for "urgent reforms" of the international financial system, after talks on forging a way out of the world economic crisis.

"A new world economic order might seem rhetorical," Tremonti told reporters.

"But it is a true goal we should be aiming towards."

The G7 delegates in a joint statement vowed to avoid protectionism as they seek to stabilise the tottering world economy and financial markets and said stabilisation of the world economy was their top priority.

"The global crisis "has highlighted fundamental weaknesses in the international financial system and that urgent reforms are needed," the statement said.

"The stabilisation of the global economy and financial markets remains our highest priority."

US Treasury Secretary Timothy Geithner vowed that his country, the biggest economy in the world and the source of much of the financial drama in recent months, would work with other nations for a consensus on reforms.

"We need to begin the process of comprehensive reform of our financial system and the international financial system, so the world never again faces a crisis this severe," Geithner said in a statement released after the talks.

Dominique Strauss-Kahn, head of the International Monetary Fund — the body coming to the rescue of some crisis-hit countries — said restructuring banks damaged by the credit crunch was the main problem facing governments. — AFP.

Labels: G7, GREAT DEPRESSION II, NEOLIBERALISM

posted by MrK @ 8:58 PM