Brazil Wants More Power for Emerging Countries and a New Bretton Woods

IMF The Brazilian government is going to propose a "Bretton Woods II" at the summit of heads of state and government of the G-20 in Washington next Saturday. The country is referring to the international agreement from July 1944 that established the regulations and multilateral financial institutions that are in operation today.

According to the Brazilian proposal, disclosed on Sunday, November 9, after the meeting of Finance ministers and central bank governors of the bloc, in São Paulo, in which the financial crisis was discussed, "the existing international forums and organizations, as well as the international rules and practices that are in use have shown themselves insufficient."

According to the text, these rules and organizations "have failed in the test of history" and it is necessary "to start immediate negotiations to redefine the international financial system".

In this respect, Brazil suggests proceeding with reforms of the International Monetary Fund (IMF), granting greater power to emerging nations and choosing managers in open processes and without nationality restrictions. The same may be said about the World Bank, according to the proposal.

The country also wants the institutional strengthening of the G-20, with its transformation into a forum of heads of state and government, different from its current format, in which it is ministerial; priority for deliberation with practical results in terms of public policies; promotion of at least two meetings of the bloc each year, prior to the meetings of the IMF and World Bank; the possibility of calling extraordinary meetings, as was the case this year; and the creation of a virtual "situation room" in which information and real time answers to crises may be exchanged.

Brazil also proposes that the Financial Stability Forum (FSF), which currently does not include emerging countries, start including this participation, or else it runs the risk of recommendations not being adopted due to lack of legitimacy.

In the area of regulation and inspection of the international financial system, Brazil elaborated a series of proposals based on the principles of representativeness and legitimacy of international financial institutions; effectiveness of instruments in these organizations to deal with contemporary challenges; correction of insufficiency of supervision and regulation of markets; collective actions among countries; good governance of domestic markets; the empowering of agents to avoid risk transfer from one country to another; transparency of information; and the creation of mechanisms for prevention of crises.

Brazil also defends the adoption of anticyclic policies to reduce the effects of the crisis, like the unbarring of credit and the relaxation of monetary and fiscal policies.

Anba – www.anba.com.br

Tags:

You May Also Like

Brazilian Beef Exports Grow 18% in 2006. Close to US$ 3 Billion in Sales

Brazilian exports of cattle beef generated US$ 353 million in September, an increase of ...

Catholic Church Accuses Brazilian Congress of Disrespecting Indian Rights

Ignoring a decision taken by the Brazilian National Commission for the Indigenous Policy (CNPI) ...

Arab Spring Winds Are Now Blowing Through Brazil

On the 7th of September – Independence Day in Brazil – the population of ...

LETTERS

A new United Nations study shows that it is enough for someone to leave ...

Requiem for a Bubble

Globo Group and the Folha Group, two giants of the media, who had wrangled ...

Brazil Gives the Formula for Eliminating Child Labor

The director general of the International Labor Organization, Juan Somavia, declared that Brazil was ...

Industry Production in Brazil Falls Two Months in a Row

Unexpectedly, Brazil’s industrial output fell for a second straight month in December. Output in ...

Brazil Opens South America’s Largest Thermoelectric Plant

Petrobras inaugurated, Wednesday, May 31, the Governor Leonel Brizola thermoelectric plant, powered by natural ...

Brazil Gets Serious About Violence Against Women

Brazil’s federal government will spend US$ 2.04 million (5 million reais) on its Program ...

Febem, São Paulo, Brazil's institution for delinquent minors

Quotas Are Just a Palliative. Brazil Needs Equal Opportunity for All.

One hundred twenty years after the abolition of slavery, two photographs, side by side, ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`