China should push fellow BRIC members to speak on behalf of other developing countries at the Toronto summit

There are quite a few reasons why the world expects to hear some encouraging news from the G20 summit to be held in Toronto on Saturday.

The global economy is not completely out of the woods yet even though some signs of recovery are being seen.

During last year's Pittsburgh Summit held in the US, leaders of G20 member nations unanimously agreed on a joint policy framework to promote robust, sustainable and balanced global economic growth.

Despite high expectations, whether substantial steps will be taken during the current summit to effectively implementing this consensus remains unclear.

Given the fact that G20 members form 90 percent of the global economic aggregate, 80 percent of its trade volume and two-thirds of its population, consultations among the bloc's leaders about key global economic matters, including the international monetary and financial system, will undoubtedly influence the whole world.

Yet, despite its increasing influence, G20 members still have a long, somewhat tortuous, way to go before final consensus is achieved and then codified into binding rules.

The G20 comprises not only major developed and financial powers but also developing and significant manufacturing hubs.

This melting pot means the bloc will likely face an uphill task in coordinating varying or even conflicting stances and viewpoints among member states on a range of issues.

In fact, ironing out differences among its members due to the wide interests at play has always been a tough task at previous G20 summit meetings.

At the Pittsburgh Summit, the G20 reached consensus on many key issues.

These included setting up a robust, sustainable and balanced development framework and putting in place a banking and financial risk monitoring and control system; reforming the organizational structure of global financial institutions and increasing representation for developing countries and giving more voting rights to them in international financial bodies.

They also agreed to take fresh measures to aid in the economic development of the impoverished, gradually stop subsidizing inefficient fossil fuels and take action to maintain an open, greener and more sustainable development model.

However, the Pittsburgh summit failed to achieve concrete results apart from its decisions to increase the share and voting power of developing countries in the International Monetary Fund (IMF) and the World Bank, and to develop the G20 forum into a regular and annual event to coordinate economic decision-making among members.

As an emerging power with growing international clout, China has been actively participating in consultations among G20 members in the hope of helping the group reach consensus on some major issues that will aid the world in effectively curbing economic recession and resuming economic growth.

Due to its nature as a non-cohesive group whose main function is to promote consultations and dialogue among member states, the agreements produced by the G20 are binding only after they are unanimously approved by all members.

China has long advocated the democratization of international relations and called for all countries, big or small, to have equal say in international matters.

Despite its increasing significance, the G20 mechanism should by no means replace the United Nations or some of its subordinate bodies such as the IMF, the World Bank and the World Trade Organization.

In addition to the G20, some other organizations, such as the G7, G8 and BRIC also play a big role in global economic matters.

Struggles among these groupings for a larger say in world matters are therefore unavoidable.

The dispute between the United States and European nations on how to reform the international financial monitoring system and between BRIC members and the West on the same issue, are likely to dampen prospects at the Toronto summit.

As a regular forum for discussions, BRIC is playing an increasingly important role in world and regional affairs.

As emerging powers, BRIC members enjoy many overlapping viewpoints and interests in quite a few economic matters, as indicated by their booming trade and investment, and monetary cooperation over the past years.

In addition to their discussions at the sidelines of the G20 summit venues, leaders of the four countries also meet on a regular basis to consult and coordinate their stances.

It is also their common stance that BRIC should be open to other countries, especially fast-growing economies.

China has supported this endeavor and has urged its development into an important supplement to the South-South cooperation that can help promote a more just and equitable international economic order.

As a developing nation that shares similar interests with other developing ones, China should represent the interests of developing countries at the G20 summit.

The fact that developing countries have been more impacted than developed ones by the global financial crisis means they must have a greater say in international platforms, including the G20 summit.

As the world's largest developing nation, China should not only speak for its own economic interests, but also push BRIC to speak on behalf of other developing countries.

A more stable and balanced global economic growth will be within reach only when a large number of developing countries make a larger contribution to the world economy.

The author is a researcher with the Development and Research Center under the State Council.

(China Daily 06/25/2010 page8)