Saturday, June 02, 2007


Replace the G8 with a G4?

The G8 should be replaced by a G4 - comprising the US, eurozone, Japan and China. Advised the press this week. Letters supported the idea.

In addition to China's elevation in the world's economic hierarchy, the second letter also said the OECD should invite it to become a member.

The Times reported on this possibility a couple of weeks ago. However the OECD have invited Russia to join [missing fromG4], but not China yet.

The Organisation for Economic Cooperation and Development decided to broaden its membership yesterday [May, 2007] by inviting Russia to join and holding out the possibility of future expansion to include emerging powerhouses such as China and India.

The move reflects a realisation that the OECD, which co-ordinates economic policies among industrialised countries, must adapt to a rapidly changing global economy that has reduced its members’ share of overall world trade and output.

The invitation received prompt replies. In Moscow, Andrei Kondakov, the head of economic cooperation at the Ministry of Foreign Affairs, said: "It’s something we’ve been waiting for for 11 years."

When the OECD was founded 46 years ago, its members accounted for 75 per cent of global wealth. Now the figure is just 60 per cent and Angel Gurria, its Secretary-General, has predicted that rapid growth in China, India, Russia and Brazil could reduce it to 50 per cent.

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