G20 gives more powers to emerging nations

Members of the G20 are to have a greater influence over the global banking and financial services industry.

World leaders this week agreed in Pittsburgh that the role of coordinating the world economy should be moved beyond the G8 to more nations.

This means that the influence of emerging economies including Brazil, India, Turkey, South Africa and China will grow.

Robert Peston, business editor for BBC News, believes this is an historic development, as having these countries "at the top table" would have been unthinkable prior to the financial crisis.

Indeed, he said the deal represents a formal acknowledgement from North America and Europe that they "no longer have a monopoly of wisdom on what's good for the global economy".

According to a statement from the White House, the G20 will be at the centre of member states' efforts to build a durable economic recovery while avoiding the "fragilities" that caused the financial crisis.

Updated: 25 September 2009.
Categories: banking-and-financial-services, finance-and-accounting, international, market-and-industry-news.