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| Change mooted for global aid
system
Ottawa at the weekend, there was evidence of a growing appetite among governments for a fundamental change to the global financial and aid system. This attitude included increasing backing for an international bankruptcy procedure for countries with debt problems - an issue given particular salience by the presence of Argentina. Gordon Brown, Chair of the IMF's watchdog committee, said the current system of reacting to problems case by case was losing support, and that a more systematic approach was needed. Paul 0'Neill, the US Treasury Secretary, has recently softened the traditional US opposition to such a measure, saying that current provisions in debt contracts made it too difficult for countries to refinance debt at lower rates - thus suggesting he was to consider changing the framework to facilitate future restructurings. The committee's communique "underscores the critical importance of involving the private sector in the prevention and resolution of financial crises." The group of 20 countries of central importance to the financial system intends further to discuss crisis resolution, including the idea of standstills to allow countries time to resolve debt problems. With regard to aid there was little progress, and no discussion of Mr. Brown's call for an additional $50bn to help poor countries. Mr. O'Neill resisted efforts to increase US aid towards the target for rich countries of 0.7 per cent of GDP.
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