U.S. Treasury Secretary Henry Paulson may get an earful Saturday, October 11, 2008, meeting with developing country officials whose economies has been harmed by the global credit crisis. Experts generally praised Paulson’s decision, announced Wednesday, to call the meeting of a group of industrialized and developing countries known as the G-20.
The move puts emerging market economies such as China, South Korea, and India on a similar footing as the richer countries that make up the G-7, which will meet with Paulson on Friday, October 10, 2008.Most the members have a opinion that “It’s a global problem and the world is more than the G-7”. In addition to the United States, the G-7 includes Canada, Japan, France, Germany, Italy and the United Kingdom. G-7 should be expanded to include major growing economies such as Brazil, China, India, and Mexico.
The G-7 and G-20 meetings are occurring at the same time finance ministers from many of the 185 member countries of the International Monetary Fund and World Bank are in Washington for their annual meeting. Some felt that “It’s a little bit risky because the big emerging markets are even more upset with the Americans than the rest of the G-7”.
They may be especially put out after following the advice of the United States and IMF and building reserves after the Asian financial crisis 10 years ago, only to now be hurt by the United States’ profligate ways.