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Rifts are emerging as finance ministers from developing countries and major powers prepare to meet in England. They hope to agree on an agenda for the G20 summit of leaders of major world economies in London next month.
But the ministers are meeting amid differences on how to tackle the worst economic downturn in decades. The US is calling for further spending to spur growth. Some European governments stress the need to change the rules governing financial markets.
This weekend’s meeting is being held in Horsham, south of London.
The US, supported by Britain, wants other governments – especially those in continental Europe – to do more to bring their economies out of recession, says the BBC’s business correspondent Mark Gregory.
But European governments have indicated they are unlikely to strain their finances by agreeing to much more spending until they have seen some results from the first round of stimulus programmes already launched, says our correspondent.
UK Chancellor Alistair Darling played down talk of rifts ahead of next month’s G20 summit.
“Generally, I think we are in agreement on the issues,” Mr Darling told the BBC.
“Of course, if you have 20 people in a room, there will be differences. Each country has to decide what to do to their economies.”
The G20 includes the world’s biggest industrial and developing countries, making up 85% of the world economy.
Boost for IMF?
Correspondents say the finance ministers want to signal they are working together to tackle the most serious economic downturn in 80 years.
“The present crisis cannot be solved by one country alone. Everyone must work together both to rebuild the financial sector and provide a fiscal stimulus,” said Japanese Finance Minister Kaoru Yosano
The meeting is also likely to focus on the need for tougher regulation of banks.
Some progress has been made on this front. Switzerland, Austria and Luxembourg on Friday said they would relax banking secrecy rules.
An increase in funding for the International Monetary Fund (IMF) is also on the agenda.
US Treasury Secretary Tim Geithner has proposed tripling the IMF’s resources to $750bn to ensure it can help all those caught in the crisis.
Japan has already offered $100bn. The EU has backed an increase to $500b and is considering a loan of $100bn.
However, Brazil, Russia, India and China – known as the Bric countries – said they would not contribute extra cash unless they were given extra voting power.
“We will only agree to increase capital to the IMF after the reform the (IMF) quotas is carried out, because there is still an imbalance in our participation in the IMF,” Brazilian Finance Minister Guido Mantega said after meeting officials from the Bric countries.
The IMF’s voting structure means that the US and Europe have a greater say on what it does.
