Developing and implementing a second generation of joint financial policies is of crucial importance, Dr. Youssef Boutros Ghali said. On the one hand, these policies should support the gradual withdrawal of the extraordinary public expenditure packages used by countries around the world to face the global financial crisis, and, on the other, serve global economic growth and job creation goals, he explained.

Many countries are facing serious financial challenges due to budget deficit inflation and rising public debt, which would limit the scope of the implementation of financial policies aimed at supporting economic growth, Dr. Ghali added. Putting growth-motivating financial policies into practice requires huge financial resources, and the enforcement of inter-state regulatory frameworks, he pointed out.

The remarks were made in a joint meeting of the International Monetary Financial Committee (IMFC) and the Group of Twenty (G-20), co-chaired by Dr. Boutros-Ghali, the chairman of the committee, and Mr. Young Yoon, the South Korean Minister of Strategy and Finance and head of the G-20. The joint meeting sets a new tradition that would hopefully ensure non-duplication and coordination of efforts by the two entities to reform the global financial policies, which would increase the effectiveness and efficiency of future meetings.

Many countries now have the burden of reforming their financial sectors via providing liquidity and adequate credit to finance private sector investments so as to raise long-term growth rates, and create sufficient and sustainable jobs. A large number of countries will need concessional financing for the implementation of financial policies necessary to motivate growth within a framework of sustainable macro-policies, Dr. Ghali elaborated.

On the other hand, the biannual meetings of the IMF and the World Bank have already started. Attended by Dr. Ghali, the meetings will focus on several outstanding critical issues, such as IMF governance, the redistribution of the developed countries' voting shares in favor of developing countries, which would guarantee the latter more leverage in setting global financial policies, the election of the president of the IMF, and reducing the number of European seats in IMFC.