MEETING OF G-20 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS: COMMUNIQUÉ
Berlin, December 15-16, 1999
G-20 Finance Ministers and Central Bank Governors
1. Finance Ministers and Central Bank Governors of the G-20 held their inaugural meeting on December 15-16, 1999 in Berlin, Germany. The meeting was chaired by Canada’s Finance Minister, Paul Martin, and hosted by German Finance Minister Hans Eichel. (A list of participants follows).
2. The G-20 was established to provide a new mechanism for informal dialogue in the framework of the Bretton Woods institutional system, to broaden the discussions on key economic and financial policy issues among systemically significant economies and promote co-operation to achieve stable and sustainable world economic growth that benefits all.
3. Ministers and Governors welcomed the improvement in global economic conditions. They reaffirmed the importance of continued progress by the WTO toward multilateral liberalization of trade in goods and services that would bring broad-based benefits to the global economy.
4. Ministers and Governors at this inaugural meeting discussed the role and objectives of the G-20, and ways to address the main vulnerabilities currently facing their respective economies and the global financial system. They recognized that sound national economic and financial policies are central to building an international financial system that is less prone to crises. They noted the importance of strengthening national balance sheets to help cushion against unexpected shocks. They encouraged steps to strengthen sovereign debt management, and greater attention to the impact of various government policies on the borrowing decisions of private firms. They recognized that unsustainable exchange rate regimes are a critical source of vulnerability, and that a consistent exchange rate and monetary policy is essential. They discussed a range of possible domestic policy responses to the challenges of globalization, and exchanged views on the role of the international community in helping to reduce vulnerability to crises.
5. They welcomed the important work that has been done by the Bretton Woods institutions and other bodies toward the establishment of international codes and standards in key areas, including transparency, data dissemination, and financial sector policy. They agreed that the more widespread implementation of such codes and standards would contribute to more prosperous domestic economies and a more stable international financial system. To demonstrate leadership in this area, Ministers and Governors agreed to undertake the completion of Reports on Observance of Standards and Codes ("Transparency Reports") and Financial Sector Assessments, within the context of continuing efforts by the IMF and World Bank to improve these mechanisms. This commitment will help mobilize support for measures to strengthen domestic capacity, policies and institutions.
6. Members of the G-20 asked their Deputies to consider existing work in other fora (including the Financial Stability Forum) and to examine further ways to reduce vulnerabilities to crises. Deputies will report on their progress at the time of the next meeting of G-20 Finance Ministers and Governors, to be held in Canada in autumn 2000.
Annex: LIST OF PARTICIPANTS
Argentina
Finance Minister:
Jorge Remes Lenicov
Minister of the Economy and Works and Public Services
Central Bank Governor:
Sr. Mario Blejer
President, Central Bank of the Republic of Argentina
Australia
Finance Minister:
Peter Costello
Treasurer
Central Bank Governor:
I.J. MacFarlane
Governor, Reserve Bank of Australia
Brazil
Finance Minister:
Pedro Sampaio Malan
Minister of State Ministry of Finance
Central Bank Governor:
Armínio Fraga Neto
Governor, Central Bank of Brazil
Canada
Finance Minister:
John Manley
Minister of Finance
Central Bank Governor:
David Dodge
Governor, Bank of Canada
China
Finance Minister:
Xiang Huaicheng
Minister of Finance
Central Bank Governor:
Dai Xianglong
Governor, People’s Bank of China
France
Finance Minister:
Laurent Fabius
Minister of the Economy and Finance
Central Bank Governor:
Jean-Claude Trichet
Governor, Bank of France
Germany
Finance Minister:
Hans Eichel Minister of Finance
Central Bank Governor:
Ernst Welteke
President, German Federal Bank
India
Finance Minister:
Jaswant Singh
Minister of Finance and Chair of the G- 20
Central Bank Governor:
Bimal Jalan
Governor, Reserve Bank of India
Indonesia
Finance Minister:
Dr. Boediono
Minister of Finance
Central Bank Governor:
Sjahril Sabirin
Governor, Bank of Indonesia
Italy
Finance Minister:
Mr. Giulio Tremonti
Minister of the Treasury and Budget
Central Bank Governor:
Antonio Fazio
Governor, Bank of Italy
Japan
Finance Minister:
Masajuro Shiokawa
Minister of Finance
Central Bank Governor:
Masaru Hayami
Governor, Bank of Japan
Korea
Finance Minister:
Yun-Churl Jeon
Minister of Finance and Economy
Central Bank Governor:
Seung Park
Governor, Bank of Korea
Mexico
Finance Minister:
Francisco Gil Díaz
Secretary of Finance and Public Credit
Central Bank Governor:
Guillermo Ortíz Martínez
Governor, Bank of Mexico
Russia
Finance Minister:
Alexei Leonidovich Kudrin
Minister of Finance
Central Bank Governor:
Sergei M. lgnatiev
Chairman, Central Bank
Saudi Arabia
Finance Minister:
Ibrahim Abdulaziz Al-Assaf
Minister of Finance and National Economy
Central Bank Governor:
Hamad Saud Al-Sayari
Governor, Saudi Arabian Monetary Agency
South Africa
Finance Minister:
T.A. (Trevor) Manuel
Minister of Finance
Central Bank Governor:
T.T. (Tito) Mboweni
Governor, Central Bank of South Africa
Turkey
Finance Minister:
Kemal Dervis
Minister of Treasury and Economic Coordination
Central Bank Governor:
Süreyya Serdengeçti
Governor, Central Bank of the Republic of Turkey
United Kingdom
Finance Minister:
Gordon Brown
Chancellor of the Exchequer
Central Bank Governor:
Eddie George
Governor, Bank of England
United States
Finance Minister:
Paul Henry O'Neill
Secretary of the Treasury
Central Bank Governor:
Alan Greenspan
Chairman, Board of Governors, Federal Reserve System
European Union
European Union Presidency
The European Union Presidency is currently held by Denmark. Greece will hold the presidency from January 1 to June 30, 2003.
European Central Bank
Wim Duisenberg
President
Bretton Woods Institutions
International Monetary Fund (IMF)
Hörst Kohler
Managing Director, International Monetary Fund
International Monetary and Financial Committee of the IMF
Gordon Brown
Chancellor of the Exchequer for UK and Chair of the International Monetary and Financial Committee of the IMF.
World Bank
James D. Wolfensohn
President, World Bank
Development Committee of the IMF and the World Bank
Mr. Trevor Manuel
Minister of Finance for South Africa and Chair of the Development Committee.