A change in perspective needed

G20 leaders need to switch focus from developed countries to promote economic recovery and global governance reform

Four issues will be in the spotlight at the upcoming G20 summit in St. Petersburg, Russia: boosting confidence in global economic growth, promoting reform of global governance, increasing unity and cooperation among developing countries, and evaluating China's economic growth trend.

The G20 emerged in response to the unprecedented 2008 international financial crisis, with its top priority promoting global economic growth. Over the years, thanks to the United States' fiscal cliff and the debt crisis in Europe, the G20 has paid more attention to economic recovery in developed countries. However, at this summit, the focus should switch from the developed world to developing countries, especially to emerging economies.

The US Federal Reserve introduced its quantitative easing without any consideration of the adverse effects it would have on other economies. Now it has indicated that it will gradually withdraw from its quantitative easing, it should listen to the opinions of others, especially those emerging economies with uncertain economic prospects.

The leaders gathering in St. Petersburg should come up with a solution that not only boosts market confidence, but also takes the practical interests of all parties into account, so as to achieve steady world economic growth and promote employment. Similarly, the fiscal arrangements in developed countries and financing arrangements in developing countries that relate to the long-term and stable development of the global economy need coordinating.

All parties should also work together to promote reform of global governance. The St. Petersburg summit will examine the implementation of the International Monetary Fund's quota reform to date, and start a new round of quota reform agenda. The role of the Financial Stability Board will be strengthened to maintain effective regulation of global financial system. The summit will also plot out the future for the multilateral trading system represented by the World Trade Organization. All these are major initiatives in global economic governance and are closely linked with the long-term interests of all parties.