Kevin Rudd and the G-20

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On April 2, the G-20 summit will be hold in London to discuss three main issues: the global economy's stability (included the aspects of growth and employment), global financial system and international financial institutions reforming (particularly IMF). G-2o is the meeting of financial ministers and central bank governors in the world's most 19 largest economies and the EU. As the 15th biggest economy, Australia plays an important part in this international forum and as her prime minister, Kevin Rudd has to deliver a highly influential voice in such a big play like that.

So, what message will Kevin Rudd deliver?

In the first place, he strongly believes that it is the right time for US to return as the global leader in the battle against the global economic crisis. Before heading to London, he has a first face-to-face meeting with Barack Obama in Washington, focusing on four main themes: the upcoming G-20 summit, the US-Australia alliance, Afghanistan policy and China. In this talk, Kevin expects US action to remove toxic assets in big banks' balance sheets. As being said by Tim Duy, "For Bernanke and Geithner, there are no bad assets. Only misunderstood assets." In addition, China will also be a significant topic. his message to Obama is to bring China into the global system and to create a new institutional framework for the 21st century.

Another considerable message is about the reforming of IMF. It is expected that the G-20 will come up with the plan to double or even tripple the IMF's $US250 billion budget. If so, Kevin Rudd suggests that China would have to contribute funds (China has currently a 3.7 per cent voting stake in the IMF), and thus, have more influence in this financial institution. He argues that in reforming the IMF, some emerging economies should have greater voice on the global governance table. More specifically, it is just one step of Kevin to lobby for Beijing in new global order. Moreover, the issue of restructuring IMF is also put on the table. Hitherto the managing director of the IMF is always a European.

With relentless work for G-20 preparation, it is expected that the Australia's PM will bring his country close to the centre of global institutions. And as I have said, it is a big play, not just for Kevin but for any leaders.