Singapore, addressing General Assembly, urges enhanced role for G20

Spotlighting the crucial role played by the so-called Group of 20 (G20) to prevent the economic crisis from spiralling into a depression, Singapore’s Foreign Minister issued a call at the General Assembly for the bloc to take the lead in breaking the deadlock in negotiations on reducing global trade barriers.

“With the world becoming multipolar, global macroeconomic coordination has become more complicated,” George Yeo told the Assembly’s annual high-level debate yesterday.

As the “global economy stared into an abyss” after the collapse of the financial services giant Lehmann Brothers two years ago, the G20 – accounting for some 85 per cent of the world’s Gross Domestic Product (GDP) – was formed given the inability of the Group of Seven (G7) or Group of Eight (G8) to achieve such coordination, he added.

“Going forward, the G20 has to go beyond the reform of international financial institutions and better coordination of fiscal, monetary and exchange rate policies,” Mr. Yeo said, warning of a potential double dip without a fundamental restructuring of the global economy.

For this reform to occur, the global trading system must be kept open to allow prices to find their right levels, he pointed out.

The Doha Round of the World Trade Organization (WTO) began in the Qatari capital in November 2001. The negotiations aim to liberalize trade worldwide, but have been stalled for several years.

“In fighting protectionism in all its forms, the leadership of the G20 is critical,” the Minister stressed.

Underlining the importance of development in the Doha talks, he called on G20 nations – accounting for 80 per cent of international trade – to take the helm in ensuring that the needs of developing nations are met.