Opinion

The Great Debate

New economies want power before paying

Paul Taylor Great Debate–Paul Taylor is a Reuters columnist, the views expressed are his own–

Anyone who expected the major emerging economies to write fat checks in exchange for being invited to the first G20 leaders’ summit on rescuing the world economy will have been disappointed.

But that should only have surprised the naive.

Despite intensive lobbying by British Prime Minister Gordon Brown of Saudi Arabia and China, the rising powers were never likely to make a cash down-payment to the International Monetary Fund before getting more seats and votes at the top table.

IMF Managing Director Dominique Strauss-Kahn said after Saturday’s Washington summit that his organization will need at least another $100 billion in the next six months to bail out countries stricken by the credit crisis.

Among the world’s major reserve holders, only Japan, an established member of the Group of Seven most industrialized nations, offered the IMF a $100 billion unilateral loan.

from Global News Journal:

What should the world do about Somalia?

Islamist militants imposing a strict form of Islamic law are knocking on the doors of Somalia's capital, the country's president fears his government could collapse -- and now pirates have seized a super-tanker laden with crude oil heading to the United States from Saudi Arabia.

Chaos, conflict and humanitarian crises in Somalia are hardly new. It's a poor, dry nation where a million people live as refugees and 10,000 civilians have been killed in the Islamist-led insurgency of the last two years. A fledgling peace process looks fragile. Any hopes an international peacekeeping force will soon come to the rescue of a country that has become the epitome of anarchic violence are optimistic, at best.

But besides causing instability in the Horn of Africa, the turmoil onshore is spilling into the busy waters of the Gulf of Aden. The European Union and NATO have beefed up patrols of this key trade route linking Asia to Europe via the Suez Canal as more and more ships fall prey to piracy. Attacks off the coast of east Africa also threaten vital food aid deliveries to Somalia.

from Global News Journal:

Saudi king basks in praise at UN interfaith forum

The price of oil may have dropped by more than half in recent weeks but the Saudi petrodollar appears to have lost none of its allure, judging by the procession of very important visitors to the New York Palace Hotel this week and to the U.N. General Assembly. With President George W. Bush in the lead, they have all come to present their compliments to King Abdullah, the Saudi ruler, who has turned the Manhattan hotel and the world body into an extension of his court, complete, it would seem, with a Majlis to receive petitioners.

Naturally, all the VIPs visiting him are eager to congratulate his majesty on his interfaith initiative, a gathering of religious and political leaders which took place  this week under the auspices of the United Nations. The meeting has attracted extravagant praise from, among others, Tony Blair, the former British Prime Minister,  and Shimon Peres,  the veteran Israeli president.

It is a fact that the king's initiative is unprecedented and bold, taking place despite the displeasure of many influential religious clerics at home. It is also a fact that he is the first Saudi leader to have travelled to the Vatican, opening dialogue between the two largest religions.

The world’s expanding top table

– Paul Taylor is a Reuters columnist, the views expressed are his own –

LONDON (Reuters) – Move over America! Make space Europe! The world’s top leadership table is expanding to bring in emerging powers from Asia, Africa and Latin America to help rescue the global economy.

This week’s Washington summit of 20 nations, called to discuss reforming the international financial system and avert a further worsening of the credit crisis that began in the United States, sets a precedent for a new international order.

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