G8 Leaders positive on global health

{image-g8 summit_08072008.jpg news.oneindia.in}Toyako(Japan) Jul 8: Even while expressing strong concern over spiralling commodity prices of fuel and food, the world's major economic powers, however, remain positive about the long-term resilience of their economies and future global economic growth.

While admitting that elevated commodity prices pose a serious challenge to stable economic growth, Group of Eight leaders, in a resolution adopted at the G-8 summit here today, expressed their determination to 'continuously take appropriate actions, individually and collectively, to ensure stability and growth in our economies and globally'.

The resolution said, "Emerging market economies are still growing strongly though our growth has moderated. However, the world economy is now facing uncertainty and downside risks persist. Among others, we express our strong concern about elevated commodity prices, especially of oil and food, since they pose a serious challenge to stable growth worldwide, have serious implications for the most vulnerable, and increase global inflationary pressure. We are determined to continuously take appropriate actions, individually and collectively, to ensure stability and growth in our economies and globally".

Claiming improvement in financial market conditions in the past few months, the G-8 leaders at the same time admitted that "serious strains still exist" and therefore, called for implementing the recommendations made by the Financial Stability Forum (FSF) in April, as also the recommendations set out by the G8 Finance Ministers' statement in Osaka.

Without naming China, the G-8 leaders said in view of large and growing current account surpluses in emerging economies, it is crucial that their effective exchange rates move so that necessary adjustment will occur.

On trade and Investment, the G-8 leaders said, "We will resist protectionist pressures against international trade and investment in all its manifestations. A successful conclusion of an ambitious, balanced and comprehensive WTO Doha agreement is critical to economic growth and development".

Calling for early conclusion of the Doha round, they urged all WTO members to make substantial contributions with a view to establishing modalities for agriculture and Nama (non-agricultural market access) as well achieving tangible results on services.

Expressing strong concerns on the sharp rise in oil prices, which poses risks to the global economy, the G8 leaders comprising the US, UK, Canada, Germany, France, Italy, Japan and Russia underlined the need for ''increasing production and refining capacities in the short-term and expanding investment in upstream and downstream of petroleum industry in the medium term.

Oil-producing countries should ensure transparent and stable investment environments conducive to increasing the production capacity needed to meet rising global demand. On the demand side, it is important to make further efforts to improve energy efficiency as well as pursue energy diversification'', the resolution added.

To enhance energy security, the G-8 leaders said they propose holding an energy forum to focus on energy efficiency and new technologies, which could also contribute to dialogue between producers and consumers.

On the Heiligendamm process, leaders of the top industrial nations said they were ready for discussing issues of investment, innovation, energy efficiency and development with leaders of India, China, Brazil, Mexico and South Africa on "an equal footing".

These five major emerging economies are known as Outreach countries(O-5). The last summit of G8 took place at Heiligendamm in Germany.

UNI SAA RP CS1612