Industrialized Leaders See Threats

The finance ministers of the Group of Eight industrialized nations,which include the U.S.,U.K.,Japan,France,Germany,Italy,Canada and Russia,are alarmed by surging oil and food prices.These prices pose a threat to the world economy as a serious challenge to stable growth,with serious implications to the most vulnerable and global inflationary pressure.Meeting over the weekend in Osaska,Japan,the ministers stated that tight supply and increasing demand was the main factor in high oil prices,though geopolitics and speculation were also to blame.U.S. Treasury Secretary Hank Paulson noted that oil production capacity hadn't risen in 10 years.The oil-producing countries should open themselves up to more exploration and production.British Chancellor of the Exchequer Alistair Darling said what we need to do,as a matter of urgency,is to increase supplies.Italy's finance minister,Giulio Tremonti,described the effect of speculation as enormous,and wants to increase the margins required of oil traders.The G-8 ministers also praised two new funds to help developing countries fight global warming.They said they remained vigilant in the face of uncertainty and downside risks in the world economy.They will take appropriate actions,individually and collectively,to secure stability and growth at home and abroad.