6. challenges for the g - 20 as a forum the g - 20 as a forum has the potential to contribute significantly to global dialogue and policy debate. of late, it seems that the forum has moved beyond its teething problems and idealism as a forum for co - operation and co - ordination, towards being viewed as an institution where process issues are becoming more prominent and actions more difficult to agree on or to implement. at the start of the global financial crisis, there was significant co - operation and co - ordination within the g - 20, however, many g - 20 countries have since become increasingly inwardly focussed and critical of the policies of other members of the forum. this was particularly so in the aftermath of the implementation of quantitative easing, which had repercussions for capital inflows and currency appreciation in emerging - market countries. advanced countries have countered that some emerging - market countries were accumulating reserves beyond what was needed for economic reasons, which has contributed to weaker exchange rates than was dictated by economic fundamentals. another challenge for the g - 20 relates to its increasing number of meetings alongside an ever growing agenda, which has led some members to question the validity of so many meetings and the ability to focus with such a wide ranging agenda. while the g - 20 as a group makes up about 80 per cent of global trade and global gdp, it consists of only 19 countries, which effectively excludes more than 160 countries. only one african country is represented in the forum. the nordic countries in particular are very critical of the group, given that the regulatory policies adopted by the g - 20 through the fsb and the basel committee affect them directly. hence, the g - 20 needs to do significantly more outreach to obtain the views of countries that are not in the forum, but that are affected by g - 20 policies. recently, some g - 20 countries asked whether a permanent g - 20 secretariat for the group should be formed. this is, however, unlikely to be easily accepted as countries tend to use the opportunity to host the g - 20 forum to showcase their countries. 7. conclusion while the expansion of the agenda and the role of the g - 20 in the global economy are seen as an opportunity by some and a threat by others, south africa will continue to focus on key issues of particular concern to both the country and the region. the g - 20 has been relatively successful in promoting regulatory reform, and south africa was a keen participant in this process, rec

thomas jordan : structures of a new financial system summary of a speech by mr thomas jordan, vice - chairman of the governing board of the swiss national bank, at the volkshochschule zurich, university of zurich, zurich, 15 april 2010. the complete speech can be found in german on the swiss national bank ’ s website ( www. snb. ch ). * * * well - functioning financial systems are fundamental for long - term economic growth. they enable capital to be allocated efficiently and facilitate trade in goods and services. however, financial systems also harbour major risks. the recent financial market crisis clearly revealed the vulnerability of our globally integrated financial system. wrong turns taken in the past few years together with government rescue measures have led to a situation that is, from a liberal perspective, untenable. all this underscores the urgent need to make financial systems more robust and to minimise the risks faced by governments and by national economies as a whole. it will not be possible to banish crises forever, since we cannot be sure what the origins of the next crisis might be or when exactly it will occur. building a more robust financial system therefore represents a major challenge. the key role that banks play in the economy combined with their high level of vulnerability clearly underline the necessity of effective bank regulation. greater stability and security, however, do not automatically mean less efficiency or growth. on the contrary, the creation of an intelligent and stabilising framework is a basic prerequisite for the efficient functioning of the financial system. to achieve this, systemic risks need to be more clearly identified and kept in check by means of better regulation. this involves, among other measures, the introduction of additional systemic capital and liquidity requirements, countercyclical buffers and provisions regarding risk concentrations in interbank positions. the financial markets, for their part, need more standardisation and greater transparency. it is important, for example, that products are increasingly traded and settled through stock exchanges. moreover, a market economy can only function efficiently if companies – including banks – can be allowed to fail and disappear from the market as a consequence of poor decision - making. the aim of such reforms is not to prevent banks from taking risks, but to ensure that, in future, the banks themselves fully bear the risks they take.