The following is a reformatted version of a statement issued before yesterday by leaders of the Group of 20 after talks in Seoul.
SUMMIT OF THE G-20 SEOUL
STATEMENT OF LEADERS
11 a 12 November 2010
1. We, the leaders of the G-20, are united in our belief that working together we can achieve a more prosperous future for the citizens of all countries.
2. The first time we met in November 2008 to address the worst global recession in our generation has faced, we are committed to support and stabilize the world economy, while laying the foundation for reform to ensure that the world will never face such problems again.
3. In the past four Summits, we have worked with unprecedented cooperation to break the dramatic fall in the global economy to lay the foundations for recovery and renewed growth.
4. The specific measures we take to ensure we are better prepared to prevent and, if necessary, to withstand future shocks. We pledge to continue our coordinated efforts and act together to generate a strong, sustainable and balanced.
5. We recognize the importance of addressing the concerns of the most vulnerable. To this end, we are determined to put jobs in the heart of recovery, to provide social protection, decent work and also to ensure rapid growth in low income countries (LICs).
6. Our tireless efforts and cooperation in the past two years have given good results. However, we must remain vigilant.
7. Risks remain. Some of us are experiencing strong growth, while others face high unemployment and slow recovery. imbalances of uneven growth and expansion are fueling the temptation to deviate from standard solutions of coordinated actions. However, no coordinated policy actions will only lead to worse outcomes for all.
8. Since 2008, a common vision of the challenges of the global economy, the necessary responses and our determination to fight protectionism has allowed us to address the causes of the crisis and ensure the recovery. We agree today to develop our shared vision to address these new challenges and a path to a strong, sustainable and balanced, beyond the crisis.
9. Today, the Seoul Summit offers:
• The Seoul Plan of Action, composed of integrated actions, the policy of cooperation and country-specific approach our common goal. The Plan includes a commitment to:
- Carry out macroeconomic policies, including fiscal consolidation, if necessary, to ensure the ongoing recovery and sustainable growth and improve the stability of financial markets, in particular the shift towards a higher rate of systems determined by the market exchange , increase flexibility of the exchange rate to reflect underlying economic fundamentals, and the non-competitive devaluation of currencies. Advanced economies, including those with reserve currencies, will be vigilant against excessive volatility and disorderly movements in exchange rates. These actions will help mitigate the risk of volatility in capital flows to emerging countries;
- Implement a series of structural reforms that promote and sustain global demand, promoting job creation and increased growth potential and
- Improve the mutual evaluation process (MAP) to promote external sustainability. We will strengthen multilateral cooperation to promote external sustainability and carry out the full range of policies aimed at reducing excessive imbalances and the maintenance of current account imbalances to sustainable levels. The persistence of large imbalances, evaluated according to the indicative guidelines to be agreed with the Finance Ministers and Central Bank Governors, ensures an assessment of its nature and causes of impediments to the adjustment as part of MAP, recognizing the need consider national or regional circumstances, including commodity producers large. These indicative guidelines consists of a series of indicators that serve as a mechanism to facilitate timely identification of the major imbalances that require preventive and corrective actions to be taken. To support our efforts towards meeting these commitments, we call upon our Framework Working Group, with technical support from the International Monetary Fund and other international organizations to develop these indicative guidelines, with progress to be reviewed by our Ministers Finance and Central Bank Governors in the first half of 2011, and in Gyeongju, our Finance Ministers and Central Bank Governors called on the IMF to provide an assessment as part of MAP in the progress towards sustainability and consistency of external the fiscal, monetary, financial, the core rate, exchange and other policies. In view of this, the first evaluation, based on the guidelines mentioned indication, will start and take place in due time under the French Presidency.
• A modernization of the IMF to better reflect changes in the global economy through greater representation of the dynamics of emerging markets and developing countries. These global quota and governance reforms, as outlined in the document of the Summit in Seoul, will be to strengthen the IMF's legitimacy, credibility and effectiveness, making it an even stronger institution to promote global financial stability growth.
instruments • Strengthen global financial safety net, which helps countries cope with financial volatility, providing practical tools to overcome the sudden change in international capital flows.
· Elements essential for a new financial regulatory framework, including banks' capital and liquidity standards and measures to better control and deal effectively with financial institutions of systemic importance, complemented by effective monitoring and supervision. This new framework, complemented by other achievements as outlined in the document of the Summit in Seoul, will ensure a more resilient financial system to curb the excesses of the past, the financial sector and better serve the needs of our economies.
• The Seoul Development of shared growth consensus for establishing our commitment to working in partnership with other developing countries and low-income countries, in particular, to help build the capacity to achieve and maximize their growth potential, thus contributing to global rebalancing. Seoul Consensus complements our commitment to achieving the Millennium Development Goals (MDGs) and focuses on specific measures outlined in our Multi-Year Action Plan Development to make a tangible and meaningful difference in people's lives, including, in particular through the development of infrastructure in developing countries.
• The Financial Inclusion Action Plan, the World Association for Financial Inclusion and flexible framework for SME financing, all of which contribute significantly to improving access to financial services and expanding opportunities for poor families and small and medium enterprises.
· Our strong commitment to direct our negotiators to participate in negotiations on the council, quickly put the Doha Round to a successful conclusion and ambitious, comprehensive and balanced, consistent with the mandate of the Doha Round for Development and built on the progress already achieved. We are aware that 2011 is a critical window of opportunity is narrow, and that the commitment between our representatives should intensify and expand. Now we must complete the final game. Once this result was reached, we are committed to seek ratification, where appropriate, in our respective systems. We are also committed to resist all forms of protectionist measures.
10. We will continue to monitor and evaluate the continued implementation of the commitments made today and in the past in a transparent and objective. We hold ourselves accountable. What we promise, we will deliver.
11. On the basis of our achievements to date, we have agreed to continue working within the framework of macro-prudential policy, better reflect the perspective of emerging financial markets regulatory reforms, strengthen regulation and supervision of banking shadow, the work on regulation and supervision of commodity derivatives markets, improving market integrity and efficiency, improve consumer protection, exercise of all outstanding issues of governance reform in the IMF and World Bank and build a more stable and robust international monetary system, including by strengthening global financial safety net. We will also expand our map based on the indicative guidelines to be agreed.
12. To promote resilience, employment creation and risk mitigation for development, which will give priority to action under the Seoul Consensus on addressing critical bottlenecks, including lack of infrastructure, volatility of the food market and the exclusion of financial services.
13. To provide more comprehensive, the visionary leadership in the post-crisis economy, we will also continue our work to prevent and combat corruption through our Action Plan against corruption, streamlining and eliminating subsidies to inefficient medium term fossil fuels, mitigate excessive volatility in the prices of fossil fuels, protect the global marine environment, and combat global climate change challenges.
14. We reaffirm our strong commitment to combat climate change, as reflected in document Leaders Summit in Seoul. We thank President Felipe Calderón information on the situation of the United Nations Framework Convention on Climate Change negotiations, and information from Prime Minister Meles Zenawi, the report of the High Level Advisory Group on Climate Change for funding made to the Secretary-General . We will spare no efforts to achieve a balanced outcome and success in Cancún.
15. Welcome to the Fourth Summit of the UN WFP in Turkey and the Fourth High Level Forum on Aid Effectiveness in Korea to be held in 2011.
16. Recognizing the importance of private sector growth and job creation, we welcome the G-20 Seoul Business Summit and look forward to the G-20 Business Summit at the upcoming Summit.
17. The measures agreed today will help further strengthen the global economy, accelerating the creation of jobs, ensure stable financial markets, reduce the development gap and promote widely shared growth beyond the crisis.
18. We look forward to our next meeting in 2011 in France, and the next meeting in 2012 in Mexico.
19. We thank Korea for its presidency of the G-20 and host a successful Summit in Seoul.
20. The document from the Seoul summit, we agreed, then.
DOCUMENT OF SEOUL SUMMIT
Framework for a strong, sustainable and balanced
1. Our unprecedented stimulus and highly coordinated fiscal and monetary policy worked to bring back to the world economy from the brink of a depression. This has highlighted that the world would benefit from a more effective international cooperation. In Pittsburgh, which started the framework for a strong, sustainable and balanced, and pledged to work together to assess the collective consequences of our national policies on growth and development challenges, identify potential risks to global economy and take additional measures to achieve our common goals.
2. Since then, we have made significant progress across our country-led, consultative mutual evaluation process (MAP) of the Framework:
Financial support policies have been put in place to promote ongoing recovery and job creation;
explicit commitments have been made to put public finances on a sustainable path;
Strong measures have been adopted and are being implemented to ensure the stability of our financial system;
Important structural reforms have been initiated and / or planned to boost global demand and growth potential, and
Important steps have been taken to strengthen the capacity of financial institutions (IFIs) in support of development.
3. Since our last meeting, the global recovery continues to progress, but they are still downside risks. We are determined to do more. Our actions strengthened the policy of collaboration and collectives can ensure the recovery and lay a solid foundation for our common goals of strong, sustainable and balanced.
The Seoul Plan of Action
4. Today we are launching the Seoul Plan of Action. We shaped the Plan with unity of purpose to:
ensuring a firm commitment to cooperation;
outline a plan of action aimed at the commitments of each member of specific policies and
meet the three goals of strong, sustainable and balanced.
5. Specifically, we commit to action in five areas of action with details of the specific commitments of members of the G-20 contained in the Supporting Document.
6. Monetary and exchange rate: We reaffirm the importance of central banks' commitment to price stability, thereby contributing to recovery and sustainable growth. We will move towards more exchange rate determined by the market and increase the flexibility of the exchange rate to reflect underlying economic fundamentals and to refrain from competitive devaluation of currencies. Advanced economies, including those with reserve currencies, will be vigilant against excessive volatility and disorderly movements in exchange rates. Taken together, these actions will help mitigate the risk of volatility in capital flows to some emerging market economies. However, in circumstances where countries face an undue burden of adjustment, the policy responses in emerging economies with adequate reserves and increasingly overvalued exchange rate flexibility can also include carefully designed macro-prudential measures. We will also redouble our efforts to promote stability and well-functioning international monetary system and called on the IMF to deepen its work in these areas.
7. Trade and Development Policy: We reaffirm our commitment to free trade and investment, recognizing its critical importance to the global recovery. We will not introduce, and oppose trade protectionism in all forms and recognize the importance of an early conclusion of Doha negotiations. We reaffirm our commitment to avoid financial protectionism and are aware of the risks of proliferation of measures that could damage prospects for investment and damage to the global recovery. With the participation of developing countries, increased production and trade, global growth targets, rebalancing and development are increasingly intertwined. We will focus efforts to solve the major bottlenecks for inclusive, sustainable and robust growth in developing countries, low-income countries (GDP), including infrastructure, human resource development, trade, private investment and job creation, food security, growth with resilience, financial inclusion, mobilization of domestic resources and knowledge sharing. In addition, we will take concrete actions to increase our financial and technical support, including the implementation of Official Development Assistance (ODA) from developed countries.
8. Fiscal Policy: The advanced economies will develop and implement clear, credible, ambitious and pro-growth medium-term budgetary plans of consolidation in line with the commitment of Toronto, differentiated according to national circumstances. We are aware of the adjustment of synchronized global recovery and the risk of non-implementation of consolidation, where immediately necessary, undermine confidence and growth.
9. Financial reforms: We are committed to taking action at the national and international levels to raise the level, and ensure that our national authorities to implement international standards developed to date, consistently, so as to ensure a level playing field, a career to the top and prevents fragmentation of markets, protectionism and regulatory arbitrage. In particular, we will fully implement the new bank capital and liquidity standards and address "problems too big to fail. We agreed to continue working in the financial regulatory reforms.
10. Structural reforms: We will implement a series of structural reforms to strengthen and sustain global demand, encourage job creation, contributing to global rebalancing, and increase our growth potential, and if necessary, undertake:
product market reforms to simplify regulation and reduce regulatory barriers to promote competition and improve productivity in key sectors.
Labour market and human resource development reforms, including improved benefits system aimed at increasing participation, education and training to increase employment in quality jobs, increase productivity and improve growth potential.
Fiscal reform to increase productivity by eliminating distortions and improving incentives to work, invest and innovate.
Green growth and policy measures aimed at innovation in finding new sources of growth and promote sustainable development.
Reforms to reduce dependence on external demand and focus more on domestic sources of growth in the surplus countries, while promoting a greater national savings and improve export competitiveness in the deficit countries.
Reforms to strengthen social safety nets such as public health care and pension plans, corporate governance and financial market development to help reduce precautionary savings in countries with emerging surplus.
Investment in infrastructure to address bottlenecks and improve growth potential.
To carry out these reforms, which are based on the experience of the OECD, IMF, World Bank, ILO and other international organizations.
11. MAP beyond the Seoul Summit: In addition, we will improve the MAP for promoting external sustainability. We will strengthen multilateral cooperation to promote external sustainability and carry out the full range of policies aimed at reducing excessive imbalances and the maintenance of current account imbalances to sustainable levels. The persistence of large imbalances, evaluated according to the indicative guidelines to be agreed with the Finance Ministers and Central Bank Governors, ensures an assessment of its nature and causes of impediments to the adjustment as part of MAP, recognizing the need consider national or regional circumstances, including commodity producers large. These indicative guidelines consists of a series of indicators that serve as a mechanism to facilitate timely identification of the major imbalances that require preventive and corrective actions to be taken. To support our efforts towards meeting these commitments, we call upon our Framework Working Group, with technical support from the International Monetary Fund and other international organizations to develop these indicative guidelines, with progress to be reviewed by our Ministers Finance and Central Bank Governors in the first half of 2011, and in Gyeongju, our Finance Ministers and Central Bank Governors called on the IMF to provide an assessment as part of MAP in the progress towards sustainability and consistency of external the fiscal, monetary, financial, the core rate, exchange and other policies. In view of this, the first evaluation, based on the guidelines mentioned indication, will start and take place in due time under the French Presidency.
12. We have a shared responsibility. Members with the sustained commitment, significant external deficits to carry out policies to support private savings and, where appropriate, make fiscal consolidation, while maintaining open markets and strengthening the export sectors. Members with the sustained commitment of significant external surpluses to strengthen internal sources of growth.
13. Recognizing the benefits of the framework, we agreed to expand and improve the country-led, consultative MAP by including monitoring the implementation of our commitments and assessment of our progress towards achieving our common goals. This process was adopted in 2011 under the French Presidency.
International Financial Institution Reform
14. When the world was in the midst of the global financial crisis, they got together and agreed to provide international financial institutions with the resources needed to support the global economy. With our agreement to substantially increase their resources and adopt new lending instruments, international financial institutions critical financial mobilized, including over $ 750 million for the Fund and 235 billion U.S. dollars by the Multilateral Development Banks (MDBs). Financial markets have stabilized and the global economy began to recover. Even in the midst of the crisis, we knew that further reforms of international financial institutions is required.
15. We committed to modernizing institutions primarily to better reflect changes in the global economy and can play more effectively its responsibilities in promoting global financial stability, promoting development and improving the lives of the poor. In June 2010, we welcomed the reforms to increase the voting power of developing countries and transition economies in the World Bank. Also remains committed to strengthening the legitimacy, credibility and effectiveness of the IMF through reform of quotas and governance.
Modernized IMF governance
16. Today, we welcomed the ambitious achievements Finance Ministers and Central Bank Governors meeting in Gyeongju, and subsequent decision by the IMF, in a comprehensive package of IMF quotas and governance reforms . The reforms are an important step towards greater legitimacy, credibility and effectiveness of the IMF, to ensure that quotas and the composition of the Executive Council are more a reflection of the new global economic realities, and recognition of the condition of the IMF as an institution based in installments, with sufficient resources to support members' needs. In accordance with our commitments at the Summit of Pittsburgh and Toronto, and going even further in a number of areas, the reforms include:
The changes in the dynamic emerging market shares and developing countries and countries with less representation than 6%, while protecting the voting share of the poorest, which we pledge to work to complete at the Annual Meetings 2012.
The doubling of contributions, with a corresponding reversal of the New Arrangements to Borrow (NAB) shares hold on when the quota increase becomes effective.
Following the dynamic process to improve the voice and representation of emerging markets and developing countries, including the poorest, through a comprehensive review of the quota formula in January 2013 to better reflect the economic weight and until the end of the next general review of quotas in January 2014.
Greater representation for emerging markets and developing countries on the Executive Board by two seats less developed in Europe, and the possibility of a second alternative for all groups of countries.
Moving to an all elected board, along with the commitment of IMF members to keep the size of the Council of 24 chairs, and after completion of the 14 th General Review, a review of the composition of the Board of every eight years .
17. We reiterate the urgency of the early conclusion of the 2008 IMF quota and voice reforms. We urge all members of the G-20 involved in the expansion of the NAP to speed up its procedures to complete the acceptance process. We ask the IMF to report on progress in accordance with the terms agreed, for the effective implementation of the quota of 2010 and government reforms to our Finance Ministers and Central Bank Governors of the G-20 meetings periodicals.
18. When combined with voice reform already agreed by the World Bank, these represent significant achievements in the modernization of our key international financial institutions. They will be even stronger player in promoting global financial stability and growth. We ask our Finance Ministers and Central Bank Governors to examine all pending issues of governance reform at the World Bank and IMF.
Surveillance
19. We recognize the importance of continuing work on the reform of the IMF mission and mandate, including strengthening surveillance.
20. IMF surveillance should be enhanced to focus on systemic risks and vulnerabilities, wherever they are. In this regard, we welcome the decision by the IMF to make financial stability assessments under the Sector Assessment Program (FSAP) a regular and mandatory part of the Article IV consultation of members with financial sectors systemically important. We call on the IMF to move forward in modernizing the IMF's mandate and modalities of surveillance. This should include, in particular, bilateral and multilateral work on strengthening surveillance covering financial stability, macroeconomic policies, the rate of structural change, with greater emphasis on systemic issues, improve synergies between the monitoring tools , to assist members in strengthening their capacity for surveillance and to ensure fairness, honesty and independence of surveillance. We welcome the IMF's efforts to carry out assessments of the broader effects of systemic political economies.
Multilateral Development Banks
21. We reiterate our commitment to complete the ambitious replacement facilities concessional loans from multilateral development banks, especially the International Development Association to help ensure that low-income countries have access to adequate concessional resources.
Strengthening global financial safety nets
22. As the world economy became more interconnected and integrated, the size and volatility of capital flows increased significantly. The increase in volatility was a source of instability in the financial crisis. Affected even countries with sound fundamentals and the effects were greater in those with more open economies. These problems persist. the current volatility of capital flows reflects the different rate of recovery among advanced economies and emerging market. National, regional and multilateral responses. Strengthening global financial safety nets can help countries to cope with financial volatility, the reduction of economic shocks of sudden changes in capital flows and the perceived need for the accumulation of reserves.
23. Therefore, we ask our Finance Ministers and Central Bank Governors to prepare policy options for strengthening the global financial safety net for our consideration at this Summit.
24. We welcome the following achievements of our mandate:
Improving Flexible Line of Credit (LCF), including the extension of its duration and the removal of the access cover. Countries with strong fundamentals and policies will have access to a refined FCL greater predictability and efficiency.
The creation of the precautionary credit line (PCL) as a preventive tool again. The PCL allows countries with sound fundamentals and policies, but moderate vulnerabilities, to benefit from the contribution of the IMF precautionary liquidity.
The recent decision by the IMF to continue its work to further improve the global capacity to address the crisis of a systemic nature and the recent clarification of the procedures for approval of the synchronized FCLS of several countries, whereby a number of countries affected by a common shock may simultaneously request access to the FCL.
Dialogue to improve collaboration among regional funding agreements (RFA) and the IMF, to recognize the potential synergies of collaboration.
25. On the basis of the achievements to date on strengthening global financial safety nets, we must continue working to improve our ability to cope with future crises. Therefore, we ask our Finance Ministers and Central Bank Governors to explore, with input from the IMF:
A. A structured approach to address the systemic crisis.
B. Ways to improve cooperation between Germany and the IMF in all possible areas and improve the ability of RFA to prevent crisis, while recognizing the specific circumstances of each region and the characteristics of each RFA.
26. Our goal is to build a more stable and robust international monetary system. While the international monetary system has proved resilient, tensions and vulnerabilities are obvious. We agreed to explore ways to further improve the international monetary system to ensure systemic stability in the global economy. We asked the IMF to deepen its work on all aspects of the international monetary system, including the volatility of capital flows. We look forward to reviewing the analysis and proposals for next year.
Financial sector reforms
27. The global financial system came to a sudden halt in 2008 as a result of reckless and irresponsible risk taking by banks and other financial institutions with major failures of regulation and supervision. Although our initial focus was to act quickly to stabilize financial markets and restore the global flow of capital, never lost sight of the need to address the root causes of the crisis. We take our first step in the Washington Summit, which developed the Plan of Action for Implementing the principles for reform. We have since built on the progress made in London, Pittsburgh and Toronto, and together, were important steps towards fixing the financial system with the support of international organizations, including the FSB (FSB) and the Committee Basel Committee on Banking Supervision (BCBS).
Transformed the financial system to address the root causes of the crisis
28. Today, we have provided the basic elements of the new financial regulatory framework to transform the global financial system.
29. We support the historic agreement reached by the Basel Committee on bank capital and a new liquidity framework, which increases the strength of the global banking system, raising the quality, quantity and consistency of the international banking capital and liquidity limits accumulation of leverage and maturity, and has the capital reserves above the minimum that can be used in bad times. The framework includes a gearing ratio of internationally harmonized to serve as an endorsement of the measures of risk-based capital. With this, we have a thorough reform of the global banking system. The new rules will dramatically reduce the incentives for banks to take excessive risks, lower the probability and severity of the crisis in the future, and allow banks to support - without special government support - stresses of a magnitude associated with the financial crisis recent. This will result in a banking system that can best support stable economic growth. We commit to adopt and fully implement these standards within the agreed timeframe that is consistent with the economic recovery and financial stability. The new framework will result in our laws and regulations, and will be implemented from January 1, 2013 and fully phased in on January 1, 2019.
30. We reaffirm our view that no company should be too big or too complicated to fail and that taxpayers should not bear the costs of resolution. We support the policy framework, work processes and deadlines given by the FSB to reduce the risks posed by the moral hazard of financial institutions of systemic importance (Sifiso) and address the "too big to fail problem. This requires a framework combines multifaceted: a framework for resolution and other measures to ensure that all financial institutions can be resolved safely, quickly and without destabilizing the financial system and taxpayer exposure to the risk of loss, the requirement that Sifiso and a particular principle that financial institutions are systemic world (G-Sifiso) should have a greater capacity to absorb the loss to reflect the greater risk that the failure of these companies represents for the global financial system, supervision of supervision intensive infrastructure market sound financial basis to reduce the risk of transmission of individual errors, and other relief and other additional requirements as determined by national authorities may include, where appropriate, charges liquidity, greater restrictions on large risks, charges and structural measures. In the context of the absorption of losses, encouraged to move forward on the feasibility of contingent capital and other instruments. We encouraged the FSB, the Basel Committee and other relevant agencies to complete the remaining work in accordance with work processes and deadlines adopted in 2011 and 2012.
31. In addition, we agreed that the G-Sifiso should be subject to a sustained global recovery and planning required resolution. We agreed to conduct a rigorous assessment of the risks of these companies through international colleges of supervisors and negotiate specific crisis of the institution of cooperation within crisis management groups. Periodic peer reviews be conducted by the FSB in the effectiveness and coherence of national policy measures in these companies.
32. Toronto reaffirm our commitment to the national implementation of the recommendations of the Committee by resolution transfer. To support the implementation at the national level, we welcomed the Committee's planned actions for the exercise of these recommendations. We called the FSB to build on this work and develop the attributes of the regimes of the effective resolution of 2011.
33. Delivering on our commitment in Toronto, which endorsed the policy recommendations made by the FSB in consultation with the IMF, the increased intensity and efficacy monitoring. We reaffirm that the new financial regulatory framework should be complemented by more effective monitoring and supervision. We agreed that supervisors should have strong and clear mandates, sufficient independence to act, the appropriate resources, and a full suite of tools and skills to proactively identify and address risks, including regular exercise testing and early intervention.
International implementation and evaluation, including peer review
34. But our reform efforts are an ongoing process. It is essential to fully implement the new rules and principles so as to ensure a level playing field, a race to the top and prevents fragmentation of markets, protectionism and regulatory arbitrage. We noticed different national starting points.
35. We reaffirm our total commitment to action and implementation.
36. Nationally, we will incorporate the new standards and principles in legislation and policies. Worldwide, the international assessment and peer review processes should be substantially improved in order to ensure consistent application in all countries and identify areas for improvement in the standards and principles. In this sense, recognized the value of the FSAP undertaken jointly by the IMF and World Bank, FSB and peer review as a means to promote the consistent implementation across countries of international standards.
37. Also strongly reiterated to work in a coherent international and non-discriminatory to strengthen regulation and oversight of hedge funds, OTC derivatives and credit rating agencies. We reaffirm the importance of fully implementing the provisions of the FSB sound compensation. We have ratified the FSB of recommendations for the implementation of reforms in the OTC derivatives market, designed to fully meet our previous commitments in an internationally consistent, recognizing the importance of equality of conditions. We asked the FSB to monitor progress regularly. We welcomed the work being undertaken by the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions (IOSCO) concerning the central counterparty. He also endorsed the principles of the FSB in reducing dependence on external credit ratings. Regulatory bodies, market participants, supervisors and central banks should not rely mechanically on external credit ratings.
38. We again stress the importance we place on achieving a single set of best global quality standards of accounting and requested the International Accounting Standards and the Financial Accounting Standards Board to complete their convergence project in late 2011. He also encouraged the Board of International Accounting Standards to further enhance the participation of stakeholders, including outreach to, and composition of emerging market economies in the process of establishing global standards in the context of independent accounting standard setting process.
39. We also reiterate our commitment to the prevention of non-cooperative jurisdictions pose risks to the global financial system and welcomed the ongoing efforts by the FSB, the Global Tax Transparency and Exchange of Information (World Forum) and the Financial Action Task Force (FATF), based on a comprehensive evaluation, consistent and transparent. We agreed on:
The FSB for determining the spring of 2011, the jurisdictions that do not cooperate fully with the evaluation process or who show insufficient progress in addressing weak compliance with the exchange of information and cooperation internationally agreed standards on the basis of the recommended measures by the agreed timetable.
The Global Forum to progress rapidly its Phase 1 and 2 assessments to achieve the target agreed by the leaders in Toronto and the progress report of November 2011. Reviewed jurisdictions identified as not having the elements used to achieve an effective exchange of information as soon as possible should address the weaknesses. We call on all jurisdictions that are willing to conclude agreements on exchange of tax information when requested by a referral partner.
The FATF to continue its successful work in identifying non-cooperative jurisdictions and regularly updating a public list of the jurisdictions with the strategic deficiencies, with the next update in February 2011.
40. We reaffirm the role of the FSB in the international coordination work of national financial authorities and international standards bodies to develop and promote the effective implementation of sectoral policies for regulatory, supervisory and other financial institutions in the interest of stability financial crisis. We asked the FSB to submit for consideration by the Finance Ministers and Governors of Central Banks long before our next meeting in 2011 proposed to strengthen their capacity, resources and government to keep pace with growing demand. We welcomed the extension of the FSB. We support the creation of regional advisory groups. We welcomed the FSB report on progress in implementing the recommendations of the G-20 to strengthen financial stability and look for another progress report at our next meeting.
Future work: issues that deserve more attention
41. While we have made significant progress in a number of areas, there are still some issues that deserve more attention:
continue working within the framework of macro-prudential policy: In order to address systemic risks in the financial sector holistically and permanently, called on the FSB, the IMF and the BIS to continue working in frames macro-prudential policy, including tools to mitigate the impact of excessive capital flows, and update our Finance Ministers and Central Bank Governors at its next meeting. These should take into account national and regional agreements. We expect a joint report to be produced on progress in the identification of best practices that will be the basis for future guidelines or principles on the design and implementation of the frameworks.
Address issues of regulatory reform relating specifically to emerging markets and developing economies: We agreed to work on financial stability issues that are of particular interest to emerging markets and developing economies, and requested the FSB, the IMF and World Bank to develop and submit to the next Summit. These themes could be: the exchange risk management by financial institutions, businesses and homes, emerging markets and developing the capacity of economies of regulation and supervision when necessary, even with regard to local branches of financial institutions abroad that are systemic in the host country and the development of deposit insurance schemes, financial inclusion, the exchange of information between home and the supervisory authorities of cross-border financial institutions and trade finance.
Strengthening regulation and supervision of banking shadow: With the completion of the new rules for banks, there is the possibility that regulatory differences may arise in the shadow banking system. Therefore, asked the FSB to work in collaboration with other international bodies setting standards to develop recommendations to strengthen the regulation and supervision of the shadow banking system by mid-2011.
continue working on the regulation and supervision of markets for commodity derivatives: call to all IOSCO Task Force on the futures markets to report to the FSB for the consideration of next steps in April 2011 in his important work .
Improve market integrity and efficiency, IOSCO is requested to develop by June 2011 and the report with the recommendations of the FSB to promote market integrity and efficiency to mitigate the risks to the financial system of the latest technological advances .
Improve consumer protection: We asked the FSB to work in collaboration with OECD and other international organizations to explore, and report to the next summit, on options to advance the protection of consumer financing through the election informed, including disclosure, transparency and education, protection against fraud, abuse and errors, and the use and promotion.
The fight against protectionism and promote trade and investment
42. Recognizing the importance of free trade and investment for the global recovery, we are committed to maintaining open markets and liberalization of trade and investment as a means of promoting economic progress for all and reduce the development gap. The importance of free trade and open markets is illustrated by the joint report by the OECD, ILO, World Bank and WTO on the benefits of trade liberalization on employment and growth. These measures of liberalization of trade and investment contributes to the achievement of the objectives of the G-20 framework for a strong, sustainable and balanced, and should be complemented by our unwavering commitment to resist protectionism in all its forms. We therefore reaffirm our commitments extending the standstill until the end of 2013 as agreed in Toronto, we promise to reverse the new protectionist measures may have increased, including export restrictions and the WTO-inconsistent measures to stimulate exports, and to request the WTO, OECD, and UNCTAD to continue monitoring the situation and to inform the public on a semi-annual basis.
43. With regard to the Doha Development Round of the WTO, we welcome a broad and substantive participation of the last four months our representatives in Geneva. Given that 2011 is a critical window of opportunity is narrow, this commitment should be intensified and expanded. Now we must complete the final game. We instruct our negotiators to begin negotiations on the council, quickly put the Doha Round to a successful conclusion and ambitious, comprehensive and balanced, consistent with the mandate of the Doha Round for Development and Progress built. Once this result was reached, we are committed to seek ratification, where appropriate, in our respective systems.
44. We firmly believe that trade can be an effective tool to reduce poverty and promote economic growth in developing countries, particularly low-income countries. LIC To support capacity to trade, we welcome the adoption of the Multi-Year Action Plan for Development. We take note of our commitment to at least maintain, beyond 2011, the AFT, which reflect the average levels for the past three years (2006-2008), to move towards free market access rights quotas for least developed countries (LDCs) products in line with our commitments in Hong Kong, subject to further negotiations, including with regard to preferential rules of origin, with an appeal to international bodies to coordinate a collective multilateral response support trade facilitation, and support measures to increase the availability of trade finance in developing countries, particularly low-income countries. In this regard, we agree to monitor and evaluate programs to support trade finance in developing countries, in particular, its coverage and its impact on low-income countries, and to assess the impact of regulatory regimes trade financing.
45. We recognize the potential for faster growth in Africa, which could be unlocked by African plans for greater regional economic integration. Therefore, are committed to supporting regional integration efforts of African leaders, for example, helping to realize his vision of a free trade area through the promotion of trade facilitation and regional infrastructure. We call on multilateral development banks and the WTO to work with us in supporting this effort.
Seoul Consensus Development for shared growth
46. The crisis disproportionately affects the most vulnerable in the poorest countries and slowed progress toward achieving the Millennium Development Goals (MDGs). As the premier economic forum, we recognize the need to strengthen and enhance our development efforts to address these challenges.
47. At the same time, reducing the development gap and poverty reduction are essential to the achievement of our broader framework of a strong, sustainable and balanced by the generation of new poles of growth and contribute to global rebalancing. Therefore, we are using our best efforts for a rapid increase in the proportion of global growth and prosperity of developing countries, particularly low-income countries.
48. We pledge to work in collaboration with other developing countries, low-income countries, in particular, to help build the capacity to achieve and maintain their potential for economic growth. We have developed a consensus on the contribution of the G-20 of global development efforts in line with our mandate to Toronto.
49. We now Seoul Consensus Development for shared growth (Annex I) and its multi-year Action Plan for Development (Annex II).
50. The Consensus of Seoul and the Multi-Year Plan of Action are based on six basic principles:
• In the first place, a significant and lasting reduction in poverty can not be achieved without inclusive, sustainable and resilient, while providing ODA, as well as the mobilization of all other sources of funding, it remains essential for Development of most low-income countries.
• In second place, we recognize that while there are common factors, there is no single formula for successful development. Therefore, must engage other countries as partners, respecting national ownership of the policies of a country as the most important determinant of successful development, thus contributing to the development of strong partnerships, responsible, accountable and transparently between the G-20 and low-income countries.
• Third, our actions must give priority to regional or global systemic issues that require collective action and have the potential transformative impact.
Fourth, we recognize the vital role the private sector to create jobs and wealth, and the need for a policy environment that supports sustainable private sector investment and sector-led growth.
• In fifth place, we will maximize our value and complement the development efforts of other stakeholders, focusing on areas where the G-20 has a comparative advantage or you can add momentum.
• And finally, we will focus on the tangible results of the significant impact that remove blockages to improving growth prospects in developing countries, especially low-income countries.
51. Consensus Seoul also identifies nine pillars that we believe are the necessary actions to resolve major bottlenecks for inclusive, sustainable and robust growth in developing countries, low-income countries, including infrastructure, human resource development, trade, private investment and job creation, food security, growth with resistance, financial inclusion, mobilization of domestic resources and knowledge sharing. The multi-year Action Plan then outlines the specific and detailed actions to which we commit ourselves to address these obstacles, including:
a) Facilitate increased investment from public, parastatal and private, and improve project implementation and maintenance of national and regional infrastructure in sectors where there are bottlenecks. We agree to establish a High Level Panel (HLP) to recommend measures to mobilize financing for infrastructure and the revision of the frameworks of multilateral development policies. We will announce the President of the High Level Group in December 2010;
b) Improve the development of employable skills match the employer and labor market needs in order to improve the ability to attract investment, create decent jobs and increase productivity. We will support the development of internationally comparable indicators of skills and improvement of national strategies for skills development, starting from the Training Strategy of G-20;
c) Improve access and availability to trade with the advanced and developing economies and among low-income countries. Our action plans on trade are discussed in paragraphs 42 to 45 above;
d) Identify, enhance and promote responsible private investment in the value chain and develop key indicators to measure and maximize the economic and employment impact of private sector investment;
e) Improve the food security policy coherence and coordination and increase agricultural productivity and food availability, including through innovative mechanisms to promote results-based, promote responsible agricultural investment, promoting small-scale agriculture, and invite relevant international organizations to develop, for our 2011 meeting in France, proposed to better manage and mitigate risks of volatile prices of food without distorting the market behavior. We also welcome the progress of World Agriculture and Food Security Program, as well as other bilateral and multilateral channels, including the UN Committee on World Food Security, and invite other contributions;
f) Improve income security and resilience to adverse shocks to help developing countries to improve the social protection programs, including through the further implementation of UN Global Press Initiative, and to facilitate the implementation of initiatives quantified the cost reduction through the transfer of remittances;
g) Increasing access to finance for poor and small enterprises and medium enterprises (SMEs). Our action plans for financial inclusion and implementation mechanisms are discussed in paragraphs 55 to 57;
h) Create sustainable revenue foundation for inclusive growth and social equity by improving developing countries' tax administration systems and policies and to highlight the relationship between non-cooperative jurisdictions and development, and
i) The exchange of the scale and the mainstream of knowledge and experience, especially among developing countries to improve their capabilities and ensure that the widest range of experiences are used to help adapt national policies .
52. We pledge to prioritize and the full, timely and effective Multi-Year Action Plan, the understanding of its high potential to have a positive impact of transformation in the lives of people, both through our individual and collective actions and cooperation with others interested in global development. Continue to work closely with international organizations to promote these actions to take.
53. We reaffirm our commitment to the MDGs and coordinate our activities in accordance with the principles agreed development worldwide for the sustainable economic, social and environmental, to complement the results of the UN High Level Plenary Meeting on MDGs in September 2010 in New York, as well as processes such as the Fourth Summit of the United Nations of LDCs in Turkey and the Fourth High Level Forum on Aid Effectiveness in Korea to be held in 2011. We also reaffirm our respective ODA pledges and commitments to help poorer countries to mobilize domestic resources made following the Monterrey Consensus and other forums.
54. We have the mandate of the Development Group to oversee the implementation of the Multi-Year Action Plan so that we can review progress and consider the need for further action in the 2011 Summit in France. Consensus Development Based on Seoul will therefore be a permanent part of the Summit of the G-20 in the future. What we promise, we will deliver.
Financial Inclusion
55. We reiterate our firm commitment to financial inclusion and recognize the benefits of access to finance to raise the lives of the poor and to support the contribution of SMEs to economic development. We welcome the report of actions taking into successful, scalable models of financing for SMEs in developing economies. We have developed the Action Plan for Financial Inclusion on the basis of our principles for Financial Inclusion innovative as the work program for next year.
56. Working with the Alliance for Financial Inclusion, the Consultative Group to Assist the Poor and the International Finance Corporation, we are committed to launch the Global Alliance for Financial Inclusion (GPFI) as an inclusive platform for all countries of the G-20, interested countries other than the G-20 and relevant stakeholders to take forward our work on financial inclusion, including the implementation of the Action Plan for Financial Inclusion. The GPFI efforts during the coming year will include helping countries implement the Principles for Financial Inclusion innovative, strengthening the data for the measurement of financial inclusion and development of methodologies for countries wishing to establish goals. We agree that the GPFI must report progress on our 2011 Summit in France.
57. Recognizing the vital role of SMEs in employment and income generation, we welcome the strong response to the SME Finance G-20 and the Challenge of innovative models to increase private financing of SMEs that have emerged from the competition and congratulate the winners. We have built a flexible framework for mobilizing SME finance the grant, venture capital and private financing through the use of existing funding mechanisms and new financing SMEs Innovation Fund to finance the winning proposals and other funding models successfully SMEs. We welcome the commitment of Canada, Korea, the United States and the Inter-American Development Bank $ 528 million for the Framework through grants and co.
Energy
Fossil fuel subsidies
58. We reaffirm our commitment to streamlining and elimination in the medium term fossil fuel inefficient subsidies that encourage excessive consumption, with timing based on national circumstances, while providing targeted support to the poorest. We instruct our Ministers of Energy and Finance to report on progress in implementing country-specific strategies and the achievement of the objectives that we agreed in Pittsburgh and Toronto in the 2011 Summit in France.
59. We note the preliminary report of the IEA, the World Bank and OECD to these organizations, along with OPEC, to further assess and review progress in implementing commitments Pittsburgh and Toronto and report to the 2011 Summit in France.
60. We recognize the value of exchanging knowledge, experience and capacity with regard to programs and policies to eliminate inefficient subsidies to fossil fuels.
Price volatility of fossil fuels
61. We recognize the importance of a well functioning and transparent market in the oil to world economic growth. We strongly support the Joint Oil Data Initiative (JODI) and ask for the IEF, the IEA and OPEC in a report suggesting concrete measures to improve the quality, timeliness and reliability of the JODI database. The report must include a proposed timetable and implementation strategy, which will explore ways to improve the availability of data on oil production, consumption, refining and stock levels as appropriate. A progress report be submitted to the February 2011 Finance Ministers Meeting, the final report submitted to the April 2011 Finance Ministers meeting. We also ask the IEF, IEA, OPEC and IOSCO to produce a joint report by the April 2011 meeting of finance ministers on how to spot prices in the oil market are assessed by agencies oil prices information and how this affects the transparency and functioning of oil markets.
62. We support the establishment of the Charter of IEF to strengthen the dialogue between producers and consumers, and to welcome the IEF plan, developed in cooperation with the IEA and OPEC to hold an annual symposium with relevant institutions in major prospects energy market. We call on the IEF, the IEA and OPEC to produce a joint report and joint statement, emphasizing their respective views and forecasts for the short, medium and long term for the oil market supply and demand. We welcome their ongoing work on the linkages between the physical oil markets and financial.
63. Welcoming June and November 2010 reports IOSCO IOSCO ask to better control the development of OTC oil markets and report to the FSB for the consideration of the following steps for better regulation and greater transparency of financial oil market in April 2011 by the Ministers of Finance and other competent ministers, informed by the work of the Energy Panel. We ask the experts Energy Group to extend its work on the volatility of other fossil fuels as a second step.
Global Environment Protection Marino
64. We welcome the progress made by the Global Environment Protection (GMEP) the initiative towards the goal of sharing best practices to protect the marine environment to prevent accidents related to offshore exploration and development, and transport sea, and to cope with its consequences. We acknowledge the work done by experts GMEP Subgroup and note the progress made in the revision of the international regulation of oil and gas exploration, production and transport for the protection of the marine environment as a first step in meeting Toronto's mandate.
65. Future work in GMEP initiative should benefit from the conclusions, as they become available, the National Commission of the oil spill PA Deepwater Horizon in the United States and the Commission Montara research in Australia. We ask the experts GMEP Subgroup to provide a new report, with the support of the Association of the IMO, OECD, IEA, OPEC, the International Forum of Regulators, and Drilling Contractors International and in consultation with stakeholders, to continue work on the exchange of best practices in the 2011 Summit in France.
Climate Change and Green Growth
66. Faced with the threat of global climate change is an urgent priority for all nations. We reiterate our commitment to take strong action-oriented and remain fully committed to the UN negotiations on climate change. We reaffirm the objective, provisions and principles of the United Nations Framework Convention on Climate Change (UNFCCC), including common but differentiated responsibilities and respective capabilities. We thank Mexico for the UNFCCC negotiations to be held in Cancun beginning in late November 2010. Those of us who have partnered with the Copenhagen Agreement reaffirm our support for it and its implementation. We are all committed to achieving a successful and balanced outcome that includes basic mitigation issues, transparency, finance, technology, adaptation and conservation of forests. In this regard, we welcome the work of the High Level Advisory Group on Climate Change funding established by the Secretary General and we ask our Finance Ministers to discuss his report. Also support and promote the implementation of commitments to finance the rapid onset.
67. The continued loss of biodiversity is a global challenge and economic environment. Both climate change and biodiversity loss are closely linked. We recognize the results of global survey on the economics of ecosystems and biodiversity. We welcome the successful conclusion of the COP10 in Nagoya.
68. We are committed to supporting green policies country-led growth promoting global growth of environmental sustainability and job creation while ensuring energy access for the poor. We recognize that sustainable green growth, as it is in itself a part of sustainable development is a strategy for quality development, which allows countries to bypass the old technology in many sectors, including through the use of efficiency energy and clean technologies. To do this, we will take steps to create, where appropriate, enabling environments that encourage the development and deployment of energy efficiency and clean energy technologies, including policies and practices in our countries and beyond, including technology transfer and training. We support ongoing initiatives in the Ministerial Conference of clean energy and stimulate discussion on cooperation in the ID measures and regulations, along with business leaders, and we ask our experts Energy Group to monitor and inform us about progress made in the 2011 Summit in France. We also pledge to encourage investment in clean energy technology, energy and resource efficiency, green transport and green cities through the mobilization of finance, establishing clear and consistent rules, the development of long-term energy policy, support education, entrepreneurship and ID, and further promote cross-border collaboration and coordination of national legislative approaches.
Fighting Corruption
69. Recognizing that corruption is a serious impediment to economic growth and development, we agree with the G-20 Anti-Corruption Action Plan (Annex III). Based on previous statements, and aware of our role as leaders of major trading nations, we recognize a special responsibility to prevent and combat corruption and commit to supporting a common approach to creating an effective global regime to combat corruption.
70. In this sense, we will take the lead in key areas as outlined in the Action Plan against corruption, including: to accede to or ratify and effectively implement the UN Convention against corruption and promote a transparent review process and inclusive, to adopt and enforce laws against bribery of foreign public officials, to prevent corrupt officials access the global financial system, considering a framework for cooperation in refusing entry to corrupt officials, extradition and recovery assets, protect whistleblowers, agencies safeguard against corruption. We are also committed to make a dedicated effort to promote public-private partnerships to combat corruption and private sector participation in the fight against corruption, to promote decency, integrity and transparency in the management of business affairs and in the public sector.
71. The G-20 held itself accountable for its commitments. Beyond our participation in existing mechanisms of peer review of international standards to combat corruption, the mandate of the Anti-Corruption Working Group to submit annual reports on the implementation of our commitments in future summits duration of the Action Plan against corruption.
Business Summit
72. Recognizing the importance of private sector growth and job creation, we welcome the Seoul G20 Business Summit held on November 10 and 11, which brought together global business leaders under the theme "The role of businesses to sustainable development and balanced growth. " We hope to continue with the G-20 Business Summit at the upcoming Summit.
Consultation
73. We recognize, given the broad impact of our decisions, the need to consult with the international community in general. We will increase our efforts to carry out the activities of G-20 to consult more systematically on the basis of constructive partnerships with international organizations, including United Nations, regional organizations, civil society, trade unions and the academy.
74. Given the importance of G-20 that both representative and effective as the premier forum for our international economic cooperation, which reached a broad consensus on a set of principles for the invitations of others to the summits, as we will not invite more than five guests who are not members, of which at least two are African.
