Kevin Rudd on the Global Financial Architecture: Time for an F20?
An Address at the International Finance Forum’s 12th Annual Conference
Speaking at the International Finance Forum’s 12th Annual Conference, Kevin Rudd, President of the Asia Society Policy Institute, discussed the need for a new global financial architecture. Use the video player below to replay his remarks in Chinese. An English translation of his remarks appears beneath the player.
I like the idea of hosting the G20 summit in Hangzhou, because most conferences are held in Beijing. It would be delightful for the heads of governments to go outside Beijing, and particularly to beautiful Hangzhou, to see a different part of China. This would create a fine atmosphere for the G20. But while the atmosphere is important, it is not as important as the content.
Many countries are very enthusiastic about the G20 being held in China next year, for China is a major power, the world’s second-largest economy, and a significant contributor to the global economy.
A couple of days ago, I paid a visit to President Xi Jinping as a member of the 21 Century at the People’s Hall. Xi emphasized the necessity to strengthen (gonggu) the role of G20 in global governance. The sustainability of such institutions requires confident leadership and regular concrete outcomes.
The current global economy is weak. It is up to the G20 to analyze the situation and find ways of strengthening the global economy.
First, trade. How can the WTO finish this round of discussions soon and reach a global trade agreement?
Second, financial stability worldwide. Existing institutions are playing important roles. However, many necessary financial reforms will require greater institutional capacity.
Third, e-finance, provided by companies such as Alibaba, is an innovation, but one that lacks a global management system.
Fourth, the renminbi will join the International Monetary Fund’s SDR [Special Drawing Rights] basket of currencies within a year. However, China’s increasing role in the global monetary system is yet to be fully accommodated. Monetary stability is a global issue and requires global cooperation.
When I was the prime minister of Australia, I proposed establishing the B20, which has been an effective vehicle. Now, as Chairman of the International Finance Forum, I have formally made the suggestion to have a F20. The F20 should include all major financial institutions, public and private, not only from the G20, but also representing all parts of the world, including Africa and Latin America.
The world today needs the utmost cooperation among all major economies.
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