G24 Ministerial meeting raises concerns of potential global financial risk

WASHINGTON, Oct 13 (KUNA) -- Despite some promising signs, ministers from developing countries raised concerns of potential risks to global financial conditions.
During a press briefing late Thursday officials representing Intergovernmental Group of 24 (G24) developing countries in Africa, Latin America and the Caribbean, and Asia in Washington Thursday to discuss monetary and development policies.
Convening during the International Monetary Fund (IMFs) annual meeting, Abraham Tekeste, Minister of Finance and Economic Cooperation of Ethiopia, Mangala Samaraweera, Minister of Finance and Mass Media of Sri Lanka , and Julio Velarde, Governor of the Central Bank of Peru and other representatives from G24 member countries signaled optimism over the overall increased momentum in global growth, trade and investment particularly in emerging markets and developing economies where reports show growth prospects in these markets are improving.
However, concern remains for medium-term downside risks, which according to the G24 "include potential increase in protectionism, sudden tightening of global financial conditions, roll back of regulatory reforms, and geopolitical risks." It is a clear nod to Britain's controversial decision to leave the European Union, commonly referred to as Brexit, which financial analysts have warned could be a catalyst for the next global financial crisis.
The G24 Ministers called on the IMF to look into systemic risks from volatile cash flows and asked for a "fair assessment of the intent, content and design" of capital flow management measures to countries handling volatility in investments into and out of countries.
They urged for continued support from International Financial Institutions (IFIs)and the international community to developing countries that are severely affected by the refugee crisis and internally displaces populations, currently the at the highest level on record.
United Nations figures show there are 65.6 million people world-wide have been forced from their homes, including 22.5 million refugees.
They also called for financial institutions to monitor potential development and economic consequences on countries that have tightened migration regulations.
In addition, they urged for multilateral cooperation efforts to tackle against illicit money laundering and financing of global terrorism, which the Ministers also discussed scaling up and optimizing public infrastructure investments to help developing countries reach sustainable development goals including in the area of renewable energy.
During the meeting at the IMF's headquarters, the officials noted the continuing challenges of capturing the benefits of trade and technological change for developing countries.
They called for IFIs to back human capital development and labor market policymaking strengthen their support for human capital development, skill building and labor market policymaking, in order to foster quality jobs and smooth labor market adjustments.
They also asked for support greater financial inclusion and economic opportunities for women. (end) hy.mb