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TEXT-G20 communique after meeting in South Korea

- reaffirmed our commitment to international assessment and peer review across the FSB membership. We also recommit to apply measures and mechanisms to address non-cooperative jurisdictions and ensure compliance, including by providing support. We welcomed the report by the Global Forum on Tax Transparency and Exchange of Information, the progress on the peer review process, and the development of a multilateral mechanism for information exchange open to all countries. We fully support the work of the Financial Action Task Force in the fight against money laundering and terrorist financing and regular updates of a public list on jurisdictions with strategic deficiencies. We welcomed the implementation of the FSB’s evaluation process on the adherence to prudential information exchange and international cooperation standards in all jurisdictions.

- recognized the need to work together so as to foster the wide-spread application of the overarching principles of propriety, integrity and transparency in the conduct of international business and finance.

5. We welcomed the agreement on the World Bank’s voice reform to increase the voting power of developing and transition countries by 3.13%. We committed to continue moving over time towards equitable voting power, while protecting the smallest poor nations, by arriving at a dynamic formula which primarily reflects countries’ evolving economic weight and the World Bank’s development mission. We committed to work towards ambitious IDA16 and African Development Fund replenishments. We also welcomed the agreements for substantial capital increases and institutional reforms at the World Bank, Inter American Development Bank, European Bank for Reconstruction and Development, and African Development Bank.

6. We called for an acceleration of the substantial work still needed for the IMF to complete the quota reform by the Seoul Summit and in parallel deliver on other governance reforms, in line with commitments made in Pittsburgh. We underscored our resolve to ensure the IMF has the resources it needs so that it can play its important role in the world economy. We reiterated the urgency of implementing the April 2008 package of IMF quota and voice reforms. We urged all participating countries to swiftly implement the expanded New Arrangements to Borrow (NAB).

7. We encouraged progress on financial safety nets and acknowledged a need for national, regional and multilateral efforts to deal with capital volatility and prevent crisis contagion, as demonstrated by the recent events, and agreed to explore policy options to improve global financial safety nets, based on sound incentives. In line with this effort, we called on the IMF to make rapid progress in reviewing its lending instruments, with a view to developing and upgrading them, as appropriate.

8. We welcomed the significant progress made on financial inclusion with the development of Principles for Innovative Financial Inclusion and stock-taking best practices in SME finance. We call on relevant international standard setting bodies to consider how they can further contribute to encouraging financial inclusion, consistent with their respective mandates. We look forward to tangible deliverables on financial inclusion at the Toronto Summit, including the launch of the SME Finance Challenge. Recognizing the importance of agriculture for growth, poverty reduction and food security, we welcomed the launch of the Global Agriculture and Food Security Program and look forward to further voluntary contributions to the fund. We reaffirmed our support for full cancellation of Haiti’s IFIs debts. We look forward to completing this cancellation.

9. We welcome the strategies and timetables provided by many G20 members for rationalizing and phasing out inefficient fossil fuel subsidies that encourage wasteful consumption. We are discussing the final report by the IEA, OPEC, OECD and World Bank on the analysis of the scope of energy subsidies and suggestions for the implementation of the Pittsburgh commitment.

10. We agreed to meet again on October 22-23, 2010 in Gyeongju, Republic of Korea, in advance of the November 2010 Seoul Summit. (G20 Summit Newsroom; +82 51 742 1846)

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