G-20 Promises Crackdown On Bankers’ Pay

Published on Huffington Post, by JANE WARDELL and AOIFE WHITE, Sept 5, 2009.

LONDON — Top finance officials from rich and developing countries on Saturday pledged to maintain stimulus measures to boost the global economy, warning that the fledging recovery that provided the backdrop to their meeting is by no means assured.

Group of 20 finance ministers also promised a crackdown on bankers’ pay – while stopping short of a European push for a cap on bonuses – and agreed to giving developing countries a greater say in international financial institutions.

A joint communique said that fiscal and monetary policy will stay “expansionary” for as long as needed to reduce the chances of a double-dip recession after the worst financial crisis since World War II … 

… The G-20 also reaffirmed its commitment to reform of the World Bank and the International Monetary Fund to give developing countries a great say on those bodies.

The BRIC proposed a quota shift of 7 percent in the IMF and 6 percent in the World Bank Group to reach an equitable distribution of voting power between advanced and developing countries.

The G-20 stopped short of that, but said it will complete World Bank reforms by spring 2010 and the next IMF quota review by January 2011.

The G-20 includes 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, Britain and the United States. The European Union, represented by its rotating presidency and the European Central Bank, is the 20th member. (full text).

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