Progress at Horsham

The G-20 fiance ministers and central bankers achieved basic agreement at their weekend conference at Horsham,near London.U.S. Treasury Secretary Timothy Geithner said we are seeing the world move together at a speed and on a scale without precedent in modern times.We have a strong consensus on the need for both recovery and reform so that we never face a crisis like this again.The ministers agreed on the need for both economic stimulus,according to the needs and abilities of individual countries,and regulatory reform,which has an international aspect.British Chancellor of the Exchequer Alistair Darling felt there had been a significant amount of progress,a great deal of consensus.Mr.Darling,however,expressed deep concern about emerging markets and their 90 million people who could be impoverished by the financial crisis.

Ministers React to Geithner

The G-8 finance ministers seemed to appreciate U.S. Treasury Secretary Timothy Geithner's presentation in Rome.Alistair Darling,the British Chancellor of the Exchequer,said it was quite clear the new American administration is getting into its stride.It wants to make a difference,not just for Americans,but for the world.The G-8 ministers described Mr.Geithner as helpful in explaining President Obama's plans,especially the integration of the various initiatives and the operation of the public-private fund for troubled assets.

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.

G-7 Confers

Finance ministers of the G-7 industrialized nations met in Washington over the weekend,addressing the credit crunch.The officials agreed to bear down on financial institutuions,requiring them to hold more capital and be more transparent.The U.S.,Germany,France,the U.K.,Italy,Japan and Canada plan to set up an international team to scrutinize the big banks.Alistair Darling,the U.K.'s Chancellor of the Exchequer,said restoring confidence is a primary concern.He called on the G-7 to act on the credit squeeze,which he likened to the Great Depression.The G-7 said that downside risks to the global economy are increasing.These include the U.S. housing market,as well as the price of oil and other commodities.Nonetheless,food shortages and prices pose a greater threat than capital markets turmoil,the G-7 noted.