Think Bigger: G20

Bertelsmann Foundation calls for giving greater voice and influence to emerging economies

The G20 Washington summit that begins today should expand its focus beyond the current financial crisis to include international financial reform, according to the Bertelsmann Foundation. Reform should include giving non-traditional centers of economic power greater influence in the international financial system. The Financial Stability Forum requires modification, emerging economies need greater voting weight at institutions such as the International Monetary Fund and the World Bank, and the G8 format should be replaced by the G20. These steps would lay the foundation for a post-Bretton Woods system.

Today's G20 summit can launch this process by eschewing protectionist policies and drafting a roadmap for reform of international financial institutions that would re-allocate power and burden-sharing among member-states. Emerging economies should show greater willingness to shoulder more responsibility to reflect the greater decision-making influence that they deserve. This holds true especially for countries with large foreign reserves, such as China and Saudi Arabia.

The Bertelsmann Foundation also calls upon eurozone countries to consolidate their representation into a single Eurogroup seat. International financial institutions should offer the African Union a seat of their own.

The Foundation's views are detailed in a paper attached to this press release.

The Bertelsmann Foundation is uniquely poised as the only non-partisan, pan-European foundation in the US capital to analyze the issues confronting participants of the G20 summit. Our experts are available for background information, commentary and interviews. Media inquiries should be made to Andrew Cohen, Bertelsmann Foundation Communications Director.

About the Bertelsmann Foundation:
The Bertelsmann Foundation is a private, nonpartisan operating foundation, working to promote and strengthen trans-Atlantic cooperation. Serving as a platform for open dialogue among key stakeholders, the foundation develops practical policy recommendations on issues central to the successful development of both continents.