Emerging economies get new role

The G20 group of leading and emerging economies is to take on a new role as a permanent body co-ordinating the world economy, a White House statement said. It will take on the role previously carried out by the developed powerhouses of the G8 group. Emerging economies get new role The G20 is meeting in the U.S. city of Pittsburgh for a two-day summit. EU officials also announced a deal to shift the balance of voting in the International Monetary Fund (IMF) towards growing nations such as China. Currently, China wields 3.7 percent of IMF votes compared with France's 4.9 percent, although the Chinese economy is now 50 percent larger than that of France. The BBC said that the rich nations of North America and Europe formally acknowledging that they no longer have a monopoly of wisdom on what's good for the global economy would be the most important thing to come out of this summit. The IMF has 186 member-states. It lends money to countries that are facing problems, but in return economic changes have to be made by those countries. The IMF has been criticized in the past as being a group of developed countries trying to lay down the law to struggling, developing countries, which is why the decision to give growing nations more votes is important. Reports also suggest that the U.S. is seeking a reduction in the number of seats on the IMF board from 24 to 20, which could mean the UK and France lose their seats. Years of low growth Near the venue, police fired rubber bullets at protesters on a march. The previous G20 meeting, in London in April, was also marred by clashes. The disturbances are thought to have begun after hundreds of protesters tried to march, without permission, towards the convention center where the summit is being held. UK Prime Minister Gordon Brown stressed the importance of co-operation and action at the summit. "Without concerted action there is a danger of years of low growth and low employment," he told Sky News. A White House statement announced the new role for the G20. "The G20 leaders reached a historic agreement to put the G20 at the center of their efforts to work together to build a durable recovery while avoiding the financial fragilities that led to the crisis," it said. "Today, leaders endorsed the G20 as the premier forum for their international economic cooperation." US Treasury Secretary Timothy Geithner said G20 countries had reached a consensus on the "basic outline" of a proposal to limit pay and bonuses by the end of 2009. Each country would set their own standards, he said, but that these would be overseen by the G20's Financial Stability Board - made up of central bankers and regulators. But there are G20 members that would like to see the agreement going further. German Finance Minister Peer Steinbrueck wrote in the Financial Times that a "global financial-transaction tax" of about 0.05 percent should be introduced.

Emerging economies get new role

The G20 is meeting in the U.S. city of Pittsburgh for a two-day summit.

EU officials also announced a deal to shift the balance of voting in the International Monetary Fund (IMF) towards growing nations such as China.

Currently, China wields 3.7 percent of IMF votes compared with France's 4.9 percent, although the Chinese economy is now 50 percent larger than that of France.

The BBC said that the rich nations of North America and Europe formally acknowledging that they no longer have a monopoly of wisdom on what's good for the global economy would be the most important thing to come out of this summit.

The IMF has 186 member-states. It lends money to countries that are facing problems, but in return economic changes have to be made by those countries.

The IMF has been criticized in the past as being a group of developed countries trying to lay down the law to struggling, developing countries, which is why the decision to give growing nations more votes is important.

Reports also suggest that the U.S. is seeking a reduction in the number of seats on the IMF board from 24 to 20, which could mean the UK and France lose their seats.

Years of low growth

Near the venue, police fired rubber bullets at protesters on a march. The previous G20 meeting, in London in April, was also marred by clashes.

The disturbances are thought to have begun after hundreds of protesters tried to march, without permission, towards the convention center where the summit is being held.

UK Prime Minister Gordon Brown stressed the importance of co-operation and action at the summit.

"Without concerted action there is a danger of years of low growth and low employment," he told Sky News.

A White House statement announced the new role for the G20.

"The G20 leaders reached a historic agreement to put the G20 at the center of their efforts to work together to build a durable recovery while avoiding the financial fragilities that led to the crisis," it said.

"Today, leaders endorsed the G20 as the premier forum for their international economic cooperation."

US Treasury Secretary Timothy Geithner said G20 countries had reached a consensus on the "basic outline" of a proposal to limit pay and bonuses by the end of 2009.

Each country would set their own standards, he said, but that these would be overseen by the G20's Financial Stability Board - made up of central bankers and regulators.

But there are G20 members that would like to see the agreement going further.

German Finance Minister Peer Steinbrueck wrote in the Financial Times that a "global financial-transaction tax" of about 0.05 percent should be introduced.