G20 must do more on financial supervision - IMF head

AGADIR, Morocco Mon Nov 1, 2010 4:27pm GMT

Related Topics

AGADIR, Morocco (Reuters) - The Group of 20 leading economies must do more to strengthen international supervision of the financial sector, International Monetary Fund chief Dominique Strauss-Kahn said on Monday.

G20 leaders are due to meet in South Korea on November 11-12 for a summit which is expected to focus on tackling imbalances in the world economy and reducing the risk of a currency war.

Speaking at a conference on human development in the Moroccan city of Agadir, Strauss-Kahn said the financial sector -- blamed by many for triggering the global economic downturn -- also remained a preoccupation.

"The G20 heads of state who met in London, Pittsburgh, Toronto and shortly in South Korea, said strongly and loudly for the population of the world to hear them, they will fix it (the financial sector)," Strauss-Kahn said.

"The reality is unfortunately more complex than this. The most difficult part in the field of regulation has been done."

"But more and more has to be done in the area of international supervision. You can have the best regulation in the world but if its implementation is not supervised, it will not be of any use," he said.

"NEW COLONIALISM"

In a question-and-answer session at the conference about development in Africa, the IMF chief said the world needed to guard against a new form of colonialism as emerging powers increase their influence on the continent.

He did not single out any countries, but some rights campaigners and opposition movements in Africa have accused China of exploiting African resources. Beijing says it brings investment and aid to areas ignored by other countries.

"If we don't pay enough attention, it will be like we ended one century-and-a-half of unequal trade, and we will enter another era of unequal trade, this time spearheaded by emerging countries," Strauss-Kahn said.

"We have to guard against another form of colonialism taking root by other superpowers who have the wind in their sails in Africa, who are, I don't want to use the word colonialism, but who are setting up a form of dominance."

These emerging powers were pursuing their objectives in Africa "using interference with national policy in these countries, using the size of their state compared to the smaller ones in Africa." Strauss-Kahn said.

(Reporting by Lamine Ghanmi; Writing by Christian Lowe; Editing by Stephen Nisbet)

FILED UNDER: