Hosting of G20 Summit Raising Korea`s Global Image

Hegemony in deciding critical issues in the global economy is fast changing to the Group of 20 nations. Accordingly, Korea’s international image is expected to see a big boost with the country’s hosting of the fifth G20 summit in November next year.

This was reflected even at a meeting of the International Monetary and Financial Committee Sunday in Istanbul, Turkey, on the sidelines of the annual session of the International Monetary Fund and the World Bank today.

The committee showed strong support in the joint communiqué, saying, “We welcome the outcomes of the G-20 Summit in Pittsburgh.” This symbolizes the shift in the world economy toward the G20 system given that the International Monetary and Financial Committee, which comprises 24 board members of the fund, coordinates the agenda for the IMF session.

The Group of Seven advanced economies is drawing little attention, reflecting the G20’s emergence as its replacement.

Seoul recognizes its enhanced status in line with the rise of the G20, and its delegates are busy as many countries are asking for meetings with them.

○ Welcoming the outcome of the G20 summit

Many see the communiqué released Sunday as a replica of the G20 declaration in Pittsburgh. For example, the communiqué backs the outcomes of the G20 summit on the IMF’s quota reform and agreed to finish the reform by January 2011 under the principle of shifting five percent of the quota held by developed economies to emerging and developing ones.

Korea, which is playing a leading role as the host of next year’s G20 summit, will also benefit from this. Korea is supposed to get 2.2 percent of the quota given its GDP, but it holds just 1.345 percent.

The communiqué also says the IMF will draw up an exit strategy given the different situations among, though it is too early to adopt an exit strategy from the liquidity released by government stimulus packages. This also well reflects the points made in the G20 agreement.

○ Korea’s prestige heightened

Korean Strategy and Finance Minister Yoon Jeung-hyun held talks with European Commissioner for Economic and Monetary Affairs Joaquin Almunia Saturday morning and attended a G20 committee meeting on the agenda for next year’s summit with finance ministers.

Korean delegation, including Deputy Finance Minister Shin Je-yoon and senior official Jeong Eun-bo of the ministry, are also busy fielding requests for unscheduled meetings in Istanbul.

“This is something that I haven’t seen before. It’s a sea of change,” Shin said. “As the international community has huge expectations for Korea, we feel a sense of responsibility and obligation as the host of the G20 summit next year.”

Yoon said, “(Since the G20’s status has risen), it is very important for us as the chair of the G20 summit to include non-G20 countries to the G20 framework.”

Thirty-four finance ministers from Third World countries heavily in debt, including Ethiopia and Bolivia, are urging their representation in the G20 discussion Sunday.

cha@donga.com