Developing and emerging countries received promises of a greater voice in global economic decision-making alongside pledges of some much needed cash on Thursday, marking significant progress in their quest to gain equal footing with the world's richest nations. Leaders at the G20 meeting in London committed to reform international financial institutions to reflect a new world order - a pledge bolstered by plans for the group to meet again in September on the sidelines of the annual UN conference in New York. That September meeting would be the third G20 meeting in around a year, indicating that world leaders are steadily moving away from relying solely on forums like the G8 rich nations' club. Developing countries had come to the London summit stressing the fact that they are paying a disproportionately high price for a crisis not of their making - bluntly summed up by Brazilian President Luiz Inacio Lula da Silva as one “created by white people with blue eyes.” Their pleas were supported by the World Bank and aid agencies, who warned that the burden on those nations could exact a heavy human and political cost. Recognizing the global financial crisis has “a disproportionate impact” on vulnerable people in poor countries, the G20 pledged to make hundreds of billions of dollars available to those countries as part of a $1.1 trillion plan to rescue the world economy. Recognizing the global financial crisis has “a disproportionate impact” on vulnerable people in poor countries, the G20 pledged to make hundreds of billions of dollars available to those countries as part of a $1.1 trillion plan to rescue the world economy. They also said that they would reform the mandates, scope and governance of international institutions “to reflect changes in the global economy and the new challenges of globalization, and that emerging and developing economies, including the poorest, must have greater voice and representation.” Adding to that, they agreed to review the leadership of institutions like the World Bank and IMF, and to make appointments through a “transparent, and merit-based selection process.” The IMF is customarily headed by a European and the World Bank by an American. Silva seemed mollified by the summit. “It is the first time I have seen rich and developing countries talking about the same issues,” he said. “I think we made history today. The IMF money will help poor countries.” Indian Prime Minister Manmohan Singh also said he would “go back home very satisfied with the outcome of the meetings.” Aid agency Oxfam said the old world of G8 meetings where developing countries “were just invited for a photo opportunity was dead.” “(British Prime Minister) Gordon Brown's new world order must be one that works for 192 countries, not just eight or 10,” spokesman Duncan Green said. China has been unusually forthright in challenging the US-led global order, calling for more influence over the IMF in return for putting up more money. South African President Kgalema Motlanthe sounded a note of caution, as analysts have warned the financial fallout could easily spiral into political instability in some of the poorest parts of the world. The World Bank has warned that millions more people will fall into extreme poverty and as many as half a million more babies will die because of the economic downturn. “We are all concerned that the bottom of this crisis is not visible yet, and therefore are aware of the fact that these decisive and courageous that have been taken to stem the freefall may not be adequate to address the full extent of this crisis,” Motlanthe said. __
