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Russia calls for new economic world order

Posted by Matt in June 10th, 2007

ST PETERSBURG, Russia (Reuters) - Russian President Vladimir Putin on Sunday called for practical steps to redraw the world economic order to reflect the growing role of fast-growing emerging nations.

He told an economic forum in St Petersburg many global trade and financial institutions tailored to meet the interests of a few key economies were ineffective and pointed to flexible regional groupings as an alternative.

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Who Spoiled the G-8 Party?

The question is how much longer we shall have to put up with these ludicrous gatherings. I say “ludicrous” not just because of the expense, and not just because of the pages of guff I have to wade through each time the G8 leaders meet, but because the very notion of a Group of Eight “leading industrialised nations” is fast becoming a complete anachronsm.

Back in 1975, of course, there were only seven countries represented at the diplomatic top table: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. That made some sense at a time when those seven countries between them accounted for around 62 per cent of global economic output. But today that proportion is down to 57 per cent. And, if the projections made by Goldman Sachs economist Jim O’Neill and his colleagues are to be believed, that figure is set to plummet downwards in the decades that lie ahead: to around 37 per cent in 2025, and a meagre 21 per cent by 2050. That is the year, you’ll recall, by which Chancellor Merkel aims to have reduced CO2 emissions by 50 per cent.

By Niall Ferguson

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[Countries link to CIA Factbook. States link to Wikipedia.]


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