Global consolidation effort hinges on G-20 nations:US official

Global consolidation effort hinges on G-20 nations:US official

"Only by working together in the G-20 can we deliver the strengthened growth, job creation and financial market resilience that our citizens deserve," the senior Treasury official said.

However, the Treasury official, who spoke on condition of anonymity, also said emerging economies have a key role to play in reinforcing the global economy.

"As advanced economies rebuild their balance sheets, the world looks to emerging markets with large surpluses to step up their efforts to boost consumption and for a transition to domestic demand-led growth," the official said.

In this regard, he said said China has the capacity to unlock broader adjustment in emerging markets for convergence with global economic goals by allowing its exchange rate to adjust more rapidly in sync with international currency movements.

"China, in particular, has the capacity to unlock broader adjustment in emerging markets by allowing its exchange rate to adjust more rapidly, which will also address domestic inflationary pressures and bolster domestic consumers, services producers and private enterprise," said the Treasury official.

"The courage of the people of the Middle East and North Africa has catalysed one of the most important transitions of our time.

"The Deauville partnership meeting on Saturday will bring together key regional and global partners committed to supporting this historic transition toward democracy and more inclusive economies in the Middle East and North Africa, recognising that now is the moment for the region and the world to work together to support the legitimate aspirations of the people in this region for greater freedom and opportunity," he said.

"We expect finance ministers from the G-8 to be joined by those from Saudi Arabia, Turkey, Kuwait, the Emirates, Qatar, Egypt, Jordan, Morocco and Tunisia and the heads of nine international regional financial organisations will also attend.

"We also hope to welcome for the first time a representative of Libya as they start the process of rebuilding their country," the official said.

"The (Treasury) Secretary's participation in the Deauville Partnership ministerial underscores America's commitment to people in the Middle East and North Africa as they build their democracies and create more inclusive societies," he said.

"Over the last six months, President Obama and his administration supported these transitions in several key ways. We announced a debt swap for Egypt and we have successfully leveraged the resources at the international institutions to provide critical financing for transition countries," he added.

"We've also worked with our G-8 partners to reorient the European Bank for Reconstruction and Development so that it can play the same role today in supporting this historic transition in the Middle East and North Africa that it played over the previous two decades in Central and Eastern Europe.

"We're also committed to developing a comprehensive trade and investment partnership initiative in the Middle East and North Africa," he said.

"Our efforts, of course, need to be aligned with the needs of the countries in the region, such as improving economic stability, strengthening the private sector, curbing corruption, creating jobs and further integrating their markets with the region and the global economy as we help the young people of these important countries to realise their aspirations," the official said.

"Of course, since we are going to become the chair of the Deauville Partnership, we're very committed to providing a lasting forum to bring this important group of partners together to advance international support for these homegrown efforts," said the Treasury official.