Expectations on the Forthcoming Global Financial Summit

As world leaders prepare to meet in a few weeks for a global financial summit, expectations are mounting on the prospect of reform of world financial systems to respond to the global financial crisis. Will the summit generate further positive outcomes following the ambitious market rescue plans by major world economies? CRI"s XYee reports.

Reporter: The idea of convening a global summit to deal with the financial crisis arose during the Canada-EU summit held in Quebec last week.

Immediately following the Quebec summit, U.S. President George Bush, in a meeting with visiting French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso, promised to invite top world leaders for a specific summit on the financial crisis immediately after the U.S. presidential election next month.

"I look forward to hosting this meeting in the near future. All developed and developing nations will be represented. And we will work together to strengthen and modernize our nation's financial systems. So we can help ensure this crisis doesn't happen again. For this meeting to be a success, we must welcome good ideas around the world."

Bringing the worsening financial crisis that originated in the United States under control is a pressing need for Bush in the last months his presidency. To do this, he will need help from leaders all over the world.

"I'm looking forward to important discussion of global financial crisis which is having an impact on hardworking people all across the world. The first task is to stabilize the financial markets in your own countries. We are living in the world connected, so it is essential that we work together, because we are in the crisis together."

However, the Europeans may harbor different expectations for the upcoming summit. Sarkozy, the current EU president, and Barroso, expressed hope that the summit would get the ball rolling on a plan to comprehensively reform the current global financial systems.

"International financial system is basic principles and regulations and its institutions need reform. We need a new global financial order. Together, the opinion of U.S we can make a difference. Together, we should show the way towards international financial crisis and contribute to global growth."

This is not a new idea. Similar calls were heard during the EU summit earlier this fall. Given the differing expectations of the Americans and Europeans, what role would developing nations play in the process? Hou Ruoshi, a research fellow with the State Council, offered his analysis.

"From the crisis this time around, we can see that the current global financial system is not reasonable - that is the root cause for the crisis. By "not reasonable," I mean there exists an inequality in the economies between developed nations on the one side, and the developing nations on the other. Having said this, I think developing nations like China, India and Brazil should have a bigger say in forging global initiatives, so it would be more appropriate for these countries to initiate a summit and raise proposals to reform the unreasonable financial system."

As the financial crisis develops, some Western countries are turning to developing economies in hopes that they can help stabilize the situation. Bush has already made it clear that he would invite leaders of China, India and Brazil to participate in the summit.

"Since the financial crisis broke out, many countries, especially Western countries, placed hopes on China in finding a solution. China is, obviously, reacting in a cautious manner. So I think by attending this summit, China should first of all ask the countries where financial crisis took place, particularly the United States and EU countries, to make clarifications on what had happened. Then China should explain how to maintain stable growth of its economy, and third, China should make known its stance on reforming the current global economic system, and if possible, raise some specific proposals. "

XYee, CRI News.