News Analysis: Establishing just, fair world financial system key to financial reforms

By Chen Yong, Ming Dajun

BEIJING, Nov. 14 (Chinese media) -- Leaders from the Group of 20, which includes

both wealthy and developing nations, are expected to meet in Washington Saturday

to search ways to curb the global financial crisis.

Top on the agenda of this summit will be how to make joint efforts in

tackling the crisis, reduce its impact on the world economy and avoid a future

economic meltdown.

The financial crisis calls urgently for strong methods to resume credit and

confidence.

The crisis did not happen overnight, but was rooted in the exiting world

financial system, established by rich nations some 70 years ago. The

international community has reached the consensus that working out a new, just

and fair world financial system with wide participation is the only way that can

lead to stable and healthy global economic development.

The crisis started from the financial turbulence in the developed countries

and spread to the developing countries.

Brazilian President Luiz Inacio Lula da Silva said: "We are all paying for

this adventure. This system collapsed like a house of cards that dragged down

with it the dogmatic faith in the principles of nonintervention by the state in

the economy."

Millions in developing nations are suffering from the worldwide credit

crunch. The developing countries suffer from the reduction of foreign aid and

export, their farmers are planting less and corporations are reducing output of

their products.

"Foreign investment funds are withdrawing their assets in the capital

markets of emerging countries to cover the losses they sustained in advanced

markets," Lula said. "This loss of funds affects balance of payments and makes

it difficult for companies to finance themselves."

It is predicted that the crisis will cut the growth rate of African

countries by some 1.5 percent next year.

The G20 summit is an opportunity to forge new international financial

regulations with the participation of both the developed and developing

countries.

Respecting the voices of every country will be key to the success of the

reforms of the world financial rules, analysts said.

Economists from developing countries said the exiting financial systems

failed, because they failed to detect the dangers of the crisis in time and

failed to prevent it from happening.

The Washington summit will be the first in a series of international

meetings to debate and decide on reforms of the financial system, and it is

believed that such meetings and efforts will continue after this summit.

A new framework for the world's financial system can't be drawn up without

the participation of emerging economies, and the developing countries should be

given greater responsibility in drafting rules to prevent future economic

meltdown.

Dialogue, coordination and respecting the voice and interest of every

participant should become the ways to formulate the new world financial rules.

The G20 groups Argentina, Australia, Brazil, Britain, Canada, China,

France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia,

South Africa, South Korea, Turkey, the United States and the European Union.