BERLIN Feb 22 The Group of 20's credibility is
at risk because it has been primarily equipped to deal with
crises and is less effective during normal times, European
Central Bank board member Joerg Asmussen said on Friday.
Asmussen said that the group of industrialised and
industrialising nations needed to be strengthened through
reforms to make it more transparent, effective and binding in
"The G20's promising start has unfortunately been followed
by more mixed results," Asmussen said in a speech.
"There is no viable or obvious alternative to the G20. ..
The G20 should develop further into what it was meant to be from
the outset: the premier forum for international economic
The G20 has come under criticism for lacking bite and
credibility, often not following through on its own agreements
and commitments, such as on the Doha trade round.
Asmussen, who attended the first G20 meeting in Berlin in
1999, working for the German finance ministry at the time, said
the forum had lost momentum in recent years, also "to an
important extent due to a waning sense of urgency".
"Global economic governance as we know it today seems to be
well equipped to manage a global crisis. But it is less
effective during normal times, which also lessens its ability to
prevent future crises," Asmussen said in a speech in Berlin.
"Global economic governance still falls short of meeting the
scale of today's challenges."
To revive the G20's power, Asmussen said it needed to adopt
a more transparent decision-making process and a more focused
and concise operational agenda.
It also needed stronger international financial institutions
and to engage with current non-members on an issue-by-issue
basis rather than by expanding its membership overly, which
could dilute its effectiveness.