g20 summit-regular gathering

(G20) summit-regular gathering

(G20) Seoul summit to help solidify G-20 as regular gathering

SEOUL, Nov. 11 (Yonhap) -- The Seoul summit of the Group of 20 major economies is expected to establish the G-20 as a regular gathering of leaders to handle key global economic issues and set rules for sustainable growth, government sources said Thursday.

The local summit preparation committee and the finance ministry said there is a good chance that G-20 leaders will announce a move to hold a summit meeting on a regular basis like the G-7 meeting of advanced industrialized economic, the Asia-Pacific Economic Cooperation and the Asia-Europe Meeting.

"The G-20 has already established itself as a 'premier forum' for economic issues, and since host countries for the 2011 and 2012 summits have been set, there is wide support for the meeting to be held regularly in the future," a government official said.

Originally, the G-20 was a gathering of finance ministers but gained prominence when leaders met in Washington in November 2008 to tackle the global financial crisis triggered by the collapse of U.S. investment giant Lehman Brothers earlier in the year.

Leaders from the Group of 20 advanced and emerging economies and international organizations such as the United Nations have since met in London, Pittsburgh and Toronto, during which the G-20 has proven its worth by handling both crisis situations and helping to lay the foundation for how the global economy should grow in the future.

"The summit has shown it can solve critical problems not only in times of crisis, but in a post-crisis environment as shown by the agreement reached during the Gyeongju finance ministers meeting last month when members moved to prevent the currency issue from getting out of hand," he said.

To turn the G-20 summit into a regular gathering, efforts are underway to create a permanent secretariat. At present, the G-20 does not have a permanent secretariat, and host countries take turns coordinating the summit and various agenda items.

Initially, there were calls to operate an "online secretariat" that may be built up into a more permanent body in the future.

In addition to the G-20 summit, officials here said that efforts are underway to institutionalize the G-20 Business Summit so that it can be held alongside the meeting of global leaders.

France has already said it wants to hold a gathering of entrepreneurs similar to meetings held in Seoul. Businessmen can coordinate their agendas with government officials to tackle issues facing the global economy, they said.

yonngong@yna.co.kr

(END)

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Briefing by Minister of Culture, Sports and Tourism Yu In-chon

Briefing by

Minister of Culture, Sports and Tourism 

Yu In-chon

1. Korea’s Bid to Host International Sporting Events 2018 PyeongChang Olympic Winter Games 2022 FIFA World Cup  2. Revitalization of International Exchanges  and Cooperation in Culture, Tourism and Sports

November 10, 2010

Ministry of Culture, Sports and Tourism

Korea’s Bid to Host International Sporting Events

2018 PyeongChang Olympic Winter Games

Background

The Republic of Korea has been trying to host the Olympic Winter Games in PyeongChang with a view to spreading winter sports across Asia. PyeongChang has been selected as one of the candidate cities for 2018 Winter Olympics along with Munich in Germany and Annecy in France. It was also chosen consecutively as a candidate city for the 2010 and 2014 Games.

If PyeongChang’s bid turns out to be successful, it would be the second Olympic Winter Games to be held in Asia in 20 years; the Nagano Games were in 1998. Out of 21 Winter Olympics in history, only two Games were held in Asia. It is expected that the PyeongChang Olympic Winter Games would contribute to further spreading the spirit of the Olympic Movement in Asia where winter sports are not commonplace and present a new opportunity for expanding their growth potential.

PyeongChang, a Fully Prepared Venue

PyeongChang is set to emerge as a hub of winter sports in Asia. Every year, some 1.5 million foreign tourists visit PyeongChang to enjoy winter sports, and it is expected to become a magnet for travelers from nearby countries, whose sports population reaches more than 1 billion. About 91 percent of Koreans support the hosting of the Winter Olympics, and the Korean Government has reaffirmed its commitment to carrying out the guarantees it has made to the IOC. Korea’s past track record of having successfully held international and domestic sporting events scores of times, including the 1988 Seoul Olympics, will be conducive to the success of the PyeongChang Winter Olympics.

PyeongChang is equipped with world-class facilities and infrastructure for the Winter Games. Alpensia Resort, a large-scale Olympic complex, had its grand opening in July 2010 after construction work with a total investment of US$140 million. Of the 13 cutting-edge facilities planned for the competitions, seven of them, including a ski jump tower and the biathlon and cross-country skiing courses, have been completed along with a media village and a hotel to house the IOC head quarters. An efficient Games plan has also been put in place. All competition venues in the Alpensia Cluster and the Coastal Cluster can be reached within 30 minutes from PyeongChang. All venues for the competitions will be accessible within 5 to 10 minutes from the Olympic Villages by expressway, national highway or railroad.

In addition, Korea has made continuous efforts to contribute to the development of winter sports. For instance, the Dream Program, which began in 2004 as part of the pledge made to the IOC, has brought together 806 young people from around 42 countries that do not have snow at any time of the year. Among them, 12 young athletes competed in international sporting events, including the 2010 Vancouver Olympic Winter Games. This kind of endeavor has gone a long way toward spreading the spirit espoused by the IOC.

Korea’s Bid to Host the 2022 FIFA World Cup

Background

The Republic of Korea has submitted a bid to host the 2022 World Cup aimed at realizing the common benefits of humanity pursued by FIFA and further spreading an enthusiastic passion for football in Asia, which accounts for nearly two thirds of the global population. On May 14, 2010, the Korean Government tendered a Bid Book to FIFA, and subsequently FIFA sent a survey delegation to Korea July 22-25, 2010 to study the competition venues and facilities. If Korea, the host of the G20 Seoul Summit, succeeds in its bid, it will become a beacon of new hope for many underdeveloped countries. 

Benefits of Korea’s Hosting the 2022 FIFA World Cup

The principles of coexistence and prosperity of all peoples and the lasting social legacy FIFA is emphasizing is in perfect harmony with Korea’s three legacies.

Korea’s Three Legacies

Legacy of Inspiration: Korea has been an inspiration to other countries by achieving economic advancement and democratization rising above poverty, war and national division. Legacy of Peace: The World Cup in Korea would contribute to promoting peace on the Korean Peninsula, the only remaining country divided by Cold War rivalries, and in Northeast Asia and beyond. Legacy of Passion: The passion of Koreans for football evidenced during the 2002 World Cup, which Korea cohosted, evolved into the FIFA Fan Fest around the world.

Korea has built the best football infrastructure coupled with an advanced IT environment, which attest to the country’s capabilities to host the largest international football event. 

For the 2022 World Cup, 12 candidate cities across the country have already been operating 14 state-of-the-art stadiums. On top of that, Korea’s capabilities to host the event have been objectively acknowledged through its experience and know-how in successfully cohosting the 2002 World Cup and hosting other international sporting events, its rapid and safe transportation networks and the state of reliable public security. 

Korea has shown a strong commitment to the progress of football across the globe through a variety of efforts, including the raising of a global football development fund. If Korea succeeds in its bid to host the 2022 World Cup, it will strive to set up a development fund worth US$77.7 billion from 2011 to 2025 to provide assistance for developing nations that lack a quality football environment and infrastructure.  

Revitalization of International Exchanges and Collaboration in Culture, Sports and Tourism 

Overview 

Korea will enhance efforts to help peoples across the globe better understand Korean culture and engage in cultural exchanges and cooperation in line with principles of cultural relativity and diversity. By assisting developing nations, which are partners in shared progress, to conserve and utilize cultural assets, Korea will help maintain their cultural identity and generate economic value added.

At a time when more than 10 million foreign tourists are expected to visit Korea annually, the domestic tourism industry is making contributions to mutual, sustainable growth by holding the T20 Tourism Ministers’ Meeting and carrying out various projects with the WTO. 

International sports interaction is being vitalized in the course of holding friendly matches, assisting developing nations to participate in global events and expanding agreements for exchanges. 

Current State 

Culture

An increased number of Korean cultural centers, hubs for cultural exchanges, was set up across the globe, thereby establishing networks with numerous countries. In 2009, the number of the centers stood at 12 in nine countries; it soared to 20 in 16 nations in 2010 and will increase to 23 in 19 countries in 2011. 

Current State of Hallyu

In the initial stages, the enthusiasm for Hallyu, the Korean Wave of popular culture, including TV broadcasts, music, films and games, mainly spread to East Asian nations. Recently, the phenomenon has started to be felt in North America, the Middle East and Central Asia. Korean digital game businesses are leading the world, boasting the second largest market share.  The dissemination of the Korean Wave has a significant ripple effect, which in monetary terms amounted to 4.9 trillion won or US$4.3 billion as of 2008. For instance, the export of content has gradually increased from US$1.2 billion in 2005 and US$1.5 billion in 2007 to US$1.9 billion in 2008. On top of this, the number of tourists who visited Korea increased to 7.81 million in 2009 from 5.81 million in 2004. As a result, more and more people have come to have favorable views about Korea.

Korea has made efforts to bolster international cooperation through official development assistance projects in culture. As part of such efforts, Korea has run invitational training programs for those involved in the cultural sector in developing nations. From 2005 to 2009, with a budget of 10 billion won or US$8.9 million, it invited a total of 500 people from 37 countries in Asia, South America and Africa. In 2010, with a budget of 1.5 billion won or US$1.3 million, it invited a total of 74 people from 35 nations. 

Under the project dubbed “Thank You, Small Library,” Korea has assisted developing nations to set up libraries. From 2007 to 2010, a total of 17 libraries was founded in Ghana and Mozambique. In 2011, Korea plans to build ten additional libraries on the African continent.

Korea has provided Funds-in-Trust to the United Nations Educational, Scientific and Cultural Organization (UNESCO) and the World Intellectual Property Organization (WIPO). It donated US$300,000 to UNESCO in 2007 and US$250,000 in 2009. Every year since 2006, Korea has provided WIPO with about US$214,000.

From 2007 to 2009, Korea provided Vietnam and Mongolia with about 300 million won or about US$268,000 for the management and preservation of cultural assets and historic sites. It also carried out joint academic research projects. 

The 2^nd UNESCO World Conference on Arts Education

The Conference was held in the Convention and Exhibition Complex (COEX) in Seoul May 25-28 this year. The number of participants from 107 countries reached about 3,000, including the UNESCO Director-General, minister and vice minister-level officials from 17 nations and professionals in the arts and culture.  The main outcome of the Conference was the adoption of the Seoul Agenda: Goals for the Development of Arts Education. Among other things, the goals were mainly to “ensure that arts education is accessible as a fundamental and sustainable component of a high quality renewal of education,…assure that arts education activities and programmes are of a high quality in conception and delivery” and “apply arts education principles and practices to contribute to resolving the social and cultural challenges facing today’s world.”  As part of follow-up measures to the Seoul Conference, the UNESCO Executive Board adopted the recommendations for the implementation of the Agenda of the Conference and decided to declare the last week of May every year to be an arts education week. The designation will be officially announced following its adoption at the UNESCO General Conference in October 2011.

Tourism and Sports

Two-way international tourism has expanded considerably. During 2010, international tourists visiting Korea are estimated to reach 8.5 million and the number of Koreans heading overseas 12 million. This contrasts with the 2009 figures when inbound tourists reached 7.81 million and outbound tourists 9.5 million.

To celebrate the G20 Seoul Summit, the T20 Tourism Ministers’ Meeting was held in Buyeo, Chungcheongnam-do (South Chungcheong Province) October 11-13, 2010. The participants agreed that tourism policies should contribute substantially to sustained shared growth. They pledged to encourage both developing and industrialized countries to help each other so that both can benefit on an equitable basis.

The Ministers’ Meeting adopted the T20 Buyeo Declaration and referred it to the President of the Republic of Korea, the chair of the 2010 G20 Seoul Summit. France, the chair of the next G20 Summit, was designated as the host of the next T20 Ministers’ Meeting.

Gist of the T20 Buyeo Declaration

Member countries will strive so that tourism will help contribute to overcoming the global economic crisis and to sustained and balanced growth throughout the world. They took note of the fact that tourism yields 5 percent of the GDP and 6-7 percent of jobs worldwide. Tourism accounts for 30 percent of the countries’ service exports totaling US$1 trillion annually. Member countries will contribute to further promoting tourism traffic, creation of new jobs and green growth. The members will do their best to mitigate the gaps in tourism through fair tourism and transfer of technologies. Fair tourism or responsible tourism denotes among other things that countries will refrain from developing tourism resources aimed at attracting travelers from industrialized countries in a lopsided fashion. It also provides that tourism will not result in undue damage to the residents of the tourist sites. It was also decided that Korea would host the 19th UNWTO General Assembly. Members affirmed their need to establish a strong, cooperative relationship with international organizations, including the World Tourism Organization (UNWTO), the International Labor Organization (ILO), the United Nations Conference on Trade and Development (UNCTAD) and the International Trade Center (ITC).

Since 2008, the Korean Government and other international organizations have been building a special partnership with the UNWTO to carry out Sustainable Tourism—Eliminating Poverty (ST-EP) Projects in 14 developing countries.

Some Details of the ST-EP Projects

(In thousand US dollars)

Year	Budget	Target Countries	Project Contents
2008	US$715	Ghana, Ethiopia, Kenya, Mozambique, Rwanda, Tanzania, Honduras, Nicaragua, Ecuador, Peru, Bolivia, Albania, Cambodia and Nepal.	In Bolivia and Peru, projects focused on strengthening community-based tourism. In Nicaragua, bigger tourist businesses were matched with smaller ones for mutual collaboration. In Ecuador, attention was given to comprehensive development of resources, including nurturing community-based tourism in rural areas.
2009	US$697
2010	US$625

Note: Korean support for the projects is for 2008-2010

Further instances of Korea’s international cooperation include the conclusion of an MOU with Ghana in October 2010 for the installation of tourist guide information signs. Some 35 such signs were put up in 10 Ghanaian districts using a budget of US$330,000 offered by the Korean Government. 

Cooperative projects by the Korean Government are often conducted in tandem with the WTO and the OECD Tourism Committee. Through these programs, the country invites 25 mid-level government officials from 20 Asia-Pacific countries every year. It occasionally invites trainees from ASEAN members for tour guide education.

The Korean Government has been proactive in concluding tourism agreements. Up to November 2010, the Republic had signed tourism MOUs with 28 countries. As of the date, it is negotiating bilateral arrangements with 8 other countries.

The Korean Government is placing priority on promoting low-carbon, green tourism as part of fulfilling its climate change obligations. Its goal is set at a 30 percent reduction of the country’s expected green house gas emission by the year 2020. The Korean Government enacted the Framework Act on Low-Carbon, Green Growth in January 2010, making the country the first in the world to do so.

Government policy stipulates the intensive control of carbon emissions at large tourist sites and amusement parks as a means of fostering eco-tourism. The objective is to preserve the environment and create more jobs. For instance, the Suncheon Bay special ecotourism project attracted 2.3 million visitors during 2009, adding 6,400 new jobs.

Korea has expanded international sports exchanges and supported athletic training for those coming from developing countries. The number of Korea-sponsored games was 29 in 2008, 30 in 2009, and 30 in 2010. Meanwhile, instances of athletic exchange projects increased from 12 in 2008, to 13 in 2009, and 14 in 2010. Instances of training athletes from developing countries ranged from 33 in 2008, to 43 in 2009, and to 39 in 2010.

The Korean Government designated taekwondo as a core sports for training in developing countries. The program provides taekwondo supplies, training in Korea and training by Korean masters in specified countries as well as dispatches demonstration teams. The Government has appropriated 2.98 billion won or US$2.6 million to be used in 95 countries for that purpose from 2008 through 2010.

The Korean Government’s Vision for the Future 

The Korean Government will continue to expand its international cooperation programs in the area of culture, sports and tourism. Its contribution will be bolstered so that it would be worthy of a country that sits on the Development Assistance Committee of the OECD as one of a dozen leading economies of the world. What is so unique about the role of Korea is that it is perfectly qualified to serve as a bridge linking developing and developed countries. The Korean Government is ready and willing to lead international efforts to boost the potential for green growth worldwide in all areas of common interests, including tourism and other culture industries. 

미디어센터

각 정상들이모이고 환률과 균형성장, 개발국에 대한지원,  IMF의 지분율, Green energy등 세계경제의 모든 흐름을 결정지을 2010 G-20 Summit이 코엑스에서 열린다. 현재는 삼엄한 경호속에 재무차관회의와 Sherpa회의가 한창 진행중인 세계의 심장부, 서울의 회의장소에 내가 발을 들일 수 있다는 것 그리고 그를 취재하는 세계의 유수의 언론사들의 기자들과 같은 자리에서 모든 소식을 접할 수 있다는 것은 국제관계를 전공하는 학생으로 흔치 않은 기회이기에 사뭇 다른 흥분은 G20 출입등록소에서 출입증을 받아들며 실감할 수 있었다.

중앙일보측에서 나온 두분의 기자분들과 1시에 만나기로 약속을 한지라 같이 나와함께 y20에 참석했던 맴버들을 12시 45분에 정문에서 만나기로해 출입증을 받은 행복함을 가라앉히고 입구로향하였다. 

검색이 끝나고 안으로 들어가자 코엑스 내부는 주변의 삼엄한 경호와는 다르게 평화로워보였다.

팀원들이 모이고 만나뵙기로한 기자분들이 있는 미디어센터에 들어섰다. 한번 더 출입증 확인을하고나서 들어선 미디어센터는 전세계의 관심의 정도를 대변하듯 엄청난 규모였다. 아직 각국의 정상들이 도착하지 않은 상황에서 앞으로 있을 정상회의 취재를 준비하며 약간은 숨을 고르는 분위기이다. 

잠시 뒤 중앙일보기자 두분이 우리를 맞이하여주셨고 브리핑실을 지나서 취재진들이 기다리는 동안 잠시 휴식을 취할 수 있게 마련된 라운지에 들어섰다.

라운지에서는 커피를 기다리며 안면있는 기자들간의 간단한인사를 건네는 모습이 취재시 앞다투어 뛰어나가는 경쟁자들의 모습보다는 오랜 친구들을 만나는 듯한 모습들이였다. 

기자분들의 자세한 설명을 듣고나서야 조금씩 시야에 미디어센터의 전체적인 모습이 들어오기 시작하였다.

한국의 한 기업의 지원으로 만들어졌다는 초대형 화면이 한쪽편에 놓여있었다. 영문으로 들어간 설명으로보아 한국을 방문한 외신기자들에게 한국을 알리고자 만들어진 것을 알 수있는 영상은 외신기자들 뿐만아니라 한국인인 나로서도 한국의 아름다움에 감탄하지 않을 수 없었게하였다. 

웅장하면서도 세심하게 제작된 영상을 보고나서 주변에 비치된 책장을 보았다. 한국을 대표하는 문학작품들이 여러나라 언어로 번역되어있었고 한국에 대한 전반적인 이해를 돕는 책자들이 모여져있었다. 꼭 보고싶은 책들이 있어 가져가고 싶은 마음이 들었다. 잠시 쉬는동안 읽어보라고 비치된 책자이겠지 싶어 가져갈 엄두를 내지 못하다가 혹시나하는 마음에 안내 데스크에 물어보았다. 대답은 의외였다. 비치된 책들은 원하면 가져갈 수 있다는 대답을 들었다. 원하던 책을 가져갈 수 있다라는 즐거움이 생기기도 전에 한국을 방문한 외국인들에게 조금이라도 한국의 아름다움과 발전을 전하기위해 준비된 모든 것들이 체계적으로 준비되었다는 것에 나는 또 한번 감탄할 수 밖에 없었다.

안내데스크는 각국의 언어를 구사하는 진행요원들이 상주하고있었으며 기사를 작성할 데스크위에는 동시통역시 필요한 리시버들이 가지런하게 놓여있었다. 자원봉사로 온 학생들도 단정하였으며 하루종일 서있어 다리가 아플텐데도 불구하고 모든사람들에게 웃음을 잃지 않았다.

처음 내가 출입증을 받고 세계의 중심지에 발을 들일 수 있다는 설레임은 미디어센터안에 하나하나 세심히 준비된 모습들을 보며 의장국으로서 외국인에 비칠 한국의 모습에 대한 자부심으로 바뀌고 있었다.

오늘 내가 본 미디어센터는 세계로 퍼져나갈 국제적인 사안에 대한 소식을 보내는 곳이 아니며 의장국의 위세를 들어내는 것도 아닌 한국의 참모습을 보여주는 준비된 곳이였으며 한국인으로서의 자부심을 느낄 수 있던 곳이였다.

G-20 Currency Agreement to Agree Collapses Already

So much for the G20's agreement to agree on currencies. South Korea, Indonesia, Columbia, Thailand, Brazil and now Europe and South Africa are all bitching about the strength of their currencies.

Every Man for Himself

Bloomberg says it's ʻEvery Man for Himselfʼ on Currencies After G-20

Wednesday, October 27, 2010 .

Finance chiefs from South Korea to South Africa signaled they may act to slow gains in their currencies, just four days after the Group of 20 vowed to soothe trade tensions in the $4 trillion-a- day foreign-exchange market.

Asian currencies fell to a one-week low after Bank of Korea Governor Kim Choong Soo said today that measures to mitigate capital flows could be “useful.” Hours later, the rand dropped as South African Finance Minister Pravin Gordhan said his government will use part of higher-than-expected tax revenue to build foreign reserves as it attempts to weaken the currency.

The shifts suggest G-20 members will keep trying to defend their economies from the slide of the dollar and capital inflows even after the group promised Oct. 23 to refrain from “competitive devaluation” and to increasingly embrace market- determined currencies.

Bank Indonesia will “guard” the rupiah at its “fundamental” level of 8,900 to 9,300 against the dollar and buy foreign currencies to limit volatility, Governor Darmin Nasution said today. Bank Negara Malaysia Governor Zeti Akhtar Aziz told Bloomberg Television yesterday she favors a gradual strengthening of the ringgit.

More currency measures may be on the way. President Juan Manuel Santos has said Colombia may take additional steps this week to ease the pesoʼs rally and Chilean President Sebastian Pinera said Oct. 25 that his government plans to increase foreign investment limits for institutions.

Having already removed a 15 percent tax exemption for foreigners on income from domestic bonds, Thailand Finance Minister Korn Chatikavanij warned on Oct. 25 that regulators are “keeping an eye” on speculative inflows.

While he didnʼt advocate action by European governments, Luxembourg Prime Minister Jean-Claude Juncker, who chairs the group of euro-area finance ministers, also said today the dollar is “undervalued” against the euro.

“Europe is the victim” of global currency policies, Juncker said at a conference in Frankfurt.

Everyone a Victim

It would be easy to mock Juncker but truth be known, everyone is a victim of Bernanke's misguided Quantitative Easing strategy and interest rate policies.

It's an international currency war says Brazilʼs finance minister as noted in Pied Piper Politics; Krugman and Candle Makers Complain about the Sun; Global Trade Wars

For more on competitive currency debasement including capital controls, please see Emerging Market Economies Turn to Capital Controls; Forex Market in State of Disarray; Gold's Message; Life Imitates Art.

Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List

China Injury Case: Key to Global Balance? -WSJ-

Concerned about rebalancing of the world economy? Then set aside the G-20 and all the complicated wrangling over exchange rates and ponder instead the story of a one-handed former Chinese factory worker.

Associated Press

Chinese workers: When will they feel safe enough to spend?

Last year, Ruan Libing’s left hand was crushed in a molding machine while he worked the night shift at a factory making household appliances in Zhuhai, southern China. It had to be amputated. Without expensive surgery to create a prosthetic hand, the 21-year-old will likely never get factory work again and so faces a life with little or no income.

As compensation, Ruan initially received 90,000 yuan, or around $13,500 — the equivalent of 170 yuan a month for the rest of his working life, or about a tenth of the salary he was earning for a 60-hour work week. Yet his employer, Elec-Tech International Co. — a Shenzhen-listed manufacturer whose customers include Wal-Mart Stores Inc — was fully compliant with Chinese law, which prescribes different lump-sum compensation payouts based solely on injury type with no adjustment for the age of the victim or for the degree of employer negligence.

Magnified across an 800-million-strong labor force, this system feeds into the problem of global imbalances – or, put another way, the notion that Americans spend too much and Chinese too little. That’s because it encourages China’s workers to save in case they suffer an income-losing injury. Along with China’s woefully limited health insurance and retirement plans, the inadequate workers compensation model is a big factor behind its 30%-plus household savings rate.

Typically, injured Chinese workers accept their measly payout and leave. But Ruan’s case is different, and represents a change that could benefit the entire world.

For two months, Ruan kept his accident quiet to avoid upsetting his parents, who live in a cowshed in a village in Hunan Province and earn around 500 yuan a year. But eventually he broke down and told a cousin, who contacted an expatriate family she knew through her work as a travel agent in Shenzhen. They referred her to China Labor Bulletin, a Hong Kong-based advocacy group, which immediately adopted the case.

CLB found Ruan a lawyer, who filed a lawsuit against Elec-Tech in a Zhuhai District Court in July, alleging gross negligence on the company’s part. It was the first time a Chinese worker had brought such a suit against an employer – a test, as CLB described it, of “the inadequacies in China’s compensation system.”

The judge rejected the claim, but Ruan’s lawyer appealed to a higher court. Then the case got a big publicity boost: Wal-Mart sprung two surprise safety audits on Elec-Tech’s facilities to identify 55 incidents of worker injuries in the preceding 12 months, including other severed hands. The giant U.S. retailer found that numerous machines were inadequately equipped with safety guards and infra-red detectors and asked that half the stamping machines be turned off until they were repaired or replaced.

Elec-Tech moved to repair the machines and entered into negotiations with Ruan, who asked for a settlement of 260,000 yuan above the 90,000 already paid.

“Although we have fulfilled our responsibility according to the law, he was our employee and he was injured during work so we are considering giving him more compensation,” a spokesman for the company told China Real Time when asked about the case earlier this week.

On Wednesday, Ruan accepted a counteroffer from Elec-Tech for an additional 130,000 yuan on condition that he drops the lawsuit.

An extra $20,000 for 44 years of lost income might not seem like much, but what matters is that a deal was reached, with a payout significantly higher than the previous one.

The question is whether such advances will be accompanied by reform of the workers compensation system that provides real security for the future — security that might free working class Chinese to finally spend some of the money they’ve been stashing away.

–Michael Casey with contributions from Yuanni Chen.

G 20 focuses on current accounts -Korea herald2010. 10.22-

GYEONGJU G20 finance ministers were struggling to find a common ground to prevent a currency battle from derailing a fragile recovery from the economic crisis as they launched a two-day meeting in Gyeongju on Friday. 

Their first-day discussion focused on a U.S. and Korean proposal to set caps on current account balances as an option to resolve global imbalances and circumvent foreign exchange disputes.

The proposal which calls for setting numerical targets for current account surpluses and deficits, received mixed reactions initially. But Seoul officials said it could be seen as a feasible alternative to the competitive currency devaluations intensified over the past few weeks.

The two-day meeting of finance ministers and central bank governors is the last high-level talks before the Seoul summit on Nov. 11-12. 

Major exports and developing nations are skeptical to the proposed trade balance cap.

Japan’s Finance Minister Yoshihiko Noda said that a U.S. proposal for setting a current account target is “unrealistic,” despite it being part of the G20’s job to urge countries to help avoid a race for cheaper currencies. “We need to talk about this first, but numerical targets seem unrealistic.” 

A U.S. senior official Wednesday had said the G20 will discuss setting targets for current account deficits or surpluses at four percent of gross domestic product.

U.S. Treasury Secretary Timothy Geithner sent a letter to his G20 counterparts, urging the nations to “commit to undertake policies consistent with reducing external imbalances below a specified share of GDP over the next few years.”

Finance Minister Yoon Jeung-hyun (right) makes the opening speech at the finance ministers and central bank governors’ meeting in Gyeongju, North Jeolla Province on Friday. From left: U.S. Federal Reserve Board Chair Ben Shalom Bernanke, Bank of France Governor Christian Noyer, French Finance Minister Christine Lagarde, and Bank of Korea Governor Kim Choong-soo. (Yonhap News)

The letter was focused in pursuing the in-deficit nations to boost national savings and meet credible targets to reduce their debt levels. Recommendations given to in-surplus nations included fixing fiscal and structural policies to boost domestic demand. 

It also urged G20 to “refrain from exchange rate policies designed to achieve competitive advantage.”

Korea, staying low-key on the issue so far, is speculated to mediate the tension through bilateral meetings. President Lee Myung-bak and Finance Minister Yoon Jeung-hyun said the exchange rate policy should be discussed at the G20 but more weight was given to the discussion over current account in tackling the economic imbalance.

The forum come at a moment when major global economies are pitted against each other to gain higher ground in the currency spat.

A central part of the dispute concerns mounting pressure on China and other Asian members, including Korea, to appreciate their currencies. 

Early in the morning, finance ministers of the Group of Seven richest countries held a closed-door meeting.

The G7 consists of the U.S., Japan, the U.K., Germany, France, Italy and Canada.

Sources speculated that the unscheduled conference was aimed at coordinating foreign exchange strategies among the advanced countries amid the international currency war. 

Apart from the G7 meeting, ministers of the U.S., France and Canada held a bilateral meeting with Korea’s Minister of Finance and Strategy Yoon Jeung-hyun, respectively, on Friday.

Noda told reporters in an emergency press conference that the G7 discussion would involve “the overall economy,” trying to emphasize that the meeting would not center on currency issues.

Japan notified Japanese reporters of the meeting Thursday night to talk about the sudden G7 meeting, sources said. 

European Union Economic and Monetary Affairs Commissioner Olli Rehn on Friday morning said the G20 must avoid the downward spiral of competitive devaluations of their currencies. He also said, however, there is a possibility of nations failing to cooperate on economic policy. 

Belgium finance minister Didier Reynders told reporters that G20 needs a balanced solution to exchange rates before the meeting began. He said exchange rates must be aligned with a nation’s economic strength.

A draft position paper from a G20 nation Thursday said G20 will pledge to “refrain from competitive undervaluation.”

It suggests G20 policy chiefs take a clear stance against a global currency war that seemed to be approaching after over a dozen nations stepped into foreign exchange markets to increase their trade surpluses.

The G20 will “move towards (a) more market-determined exchange-rate system,” it said.

Finance officials will discuss IMF reforms, global financial safety net, framework for strong, sustainable and balanced growth and bank reforms Saturday.


source - http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101022000835