G20 no place for arrogance - Manuel

Mar 14, 2009

SOUTH African finance minister Trevor Manuel hopes advanced economies will not act with arrogance when finance ministers from the Group of 20 (G20) developed and developing nations meet this weekend to discuss the world economy out of crisis.

DAR ES SALAAM

SOUTH African finance minister Trevor Manuel hopes advanced economies will not act with arrogance when finance ministers from the Group of 20 (G20) developed and developing nations meet this weekend to discuss the world economy out of crisis.

“I just hope this arrogance of ‘we are so much better than the emerging markets...’ isn’t going to find resonance,” Manuel said after an IMF conference this week devoted to Africa in the Tanzanian capital.

Emerging market countries are fuming over the failure by developed countries, which have long preached to them about sound economic practices, to properly regulate their banks and prevent the reckless lending in the US housing sector that led to the crisis.

Manuel said while rich nations have moved quickly to shore up their economies and banks with big rescue packages, their responses have so far been too nationalistic.
“The question, though, is whether the impulse for their movement is not too nationalist because you need a high level of coordination and a global effort,” he said.
Manuel said effectively addressing the crisis would require a bigger joint effort.

“If you want the world to work in a way where you can maximise the benefits of this global economy, then you give a little bit and you can manage these kinds of things.
“It’s not like burning the flag and no longer singing your national anthem. But in the same way as any relationship, it requires a bit of give,” he said.

South Africa is the only African country represented in the G20 and Manuel said there was a sense of despair across the region.
Reuters

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