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World
Analysis: G20 leaders to seek cure for ailing world economy
Policymakers of the Group of Twenty (G20) nations will meet this week in the Russian city of St. Petersburg for the eighth time to take the pulse of the global economy and strive to prescribe a remedy.
Though no instant cure is expected for the world economy which is suffering a toddling recovery and sluggish growth, a common strategy to maintain strong economic growth is needed for both developed countries and emerging economies of the 20-member group, experts said.
STRONG GROWTH AS COMMON GOAL
Russia, which holds the G20 rotating presidency this year, outlined a strategic agenda aimed at igniting a new cycle of economic growth through stimulating investment, boosting market confidence and transparency, and improving regulatory effectiveness.
Against the backdrop of volatile financial markets and high unemployment rates worldwide, President Vladimir Putin said in his recent address concerning the upcoming St. Petersburg summit that the key objective of the G20 at this moment is to "achieve a strong, sustainable and balanced growth."
According to Ksenia Yudaeva, Russia's G20 Sherpa and chief of presidential experts' directorate, the cyclical nature of economic activity could partially explain the recession in Europe, but a lack of fresh sources for growth is the major cause of the global economic slowdown.
The official highlighted the role of investment in boosting economies, as investment "is clearly the long-term and new source for growth," she told Xinhua.
Russian G20 organizers said that "important decisions" are to be made to stimulate investment. A roadmap for long-term investment and finance has been formulated and will be implemented during the Australian Presidency.
Facilitating the reform of the international financial system and establishing a new quota formula of the International Monetary Fund (IMF) also call for coordination among the member states. Reform and restructuring could continue only when each member accommodates both national and common interests, experts said.
During the two-day summit, Russian G20 organizers expect world leaders to support the process of IMF reforms and increase emerging countries' quotas in managing the IMF in an effort to build a balanced global financial system.