Emerging Countries Looking For Equal Say At G20 Summit

SAO PAULO (AFP)--The big emerging countries that are now the main pillars of world economic growth hope to push their way into seats next to the rich nations' club at the G20 summit in Washington on Saturday.

Brazil, Russia, India and China - the so-called BRIC countries - are determined to have their new heavyweight status recognized by the Group of Seven advanced countries, and to win a say in directing the planet's economic affairs.

Their newfound influence, particularly China's, was felt last weekend when Beijing sent stock markets spinning upward after announcing a $586 billion stimulus package.

Brazil and India, which have become public lobbyists on behalf of the emerging markets, want a new financial architecture to emerge from the crisis, calling the current constitution of the G7, the International Monetary Fund and the World Bank outdated.

Brazil has been especially vocal in noting that - this time - the emerging countries aren't to blame for the global crisis, which rippled out from the U.S. and quickly contaminated Europe.

The poorer countries, though, face big risks as the crisis grows and mutates, notably in terms of commodity export prices, lack of liquidity and foreign exchange volatility.

Indian Prime Minister Manmohan Singh has that said the financial system must be reformed, and that countries should acknowledge the "economically damaging role of excessive speculative activity."

"When the capital development of a country becomes a byproduct of the activities of a casino, the job is likely to be ill-done," he said.

The demand by the BRICs was partially conceded by the main industrialized countries at a preparatory G20 meeting of finance ministers and central bankers in Sao Paulo during the weekend.

The group agreed that the IMF and other institutions formed from the 1944 Bretton Woods accord "must be comprehensively reformed so that they can more adequately reflect changing economic weights in the world economy."

The U.S. representative at that meeting, David McCormick, Treasury undersecretary for international affairs, said Washington has long backed giving emerging countries more say in the IMF and the World Bank.

The summit, he said, "will lay the groundwork toward making important regulatory changes."

Singh is expected to push for greater IMF and World Bank assistance to vulnerable countries.

He and Brazilian President Luiz Inacio Lula da Silva hope to see solutions that spare their nations from the fallout of troubles that started in rich countries.

They are looking for a better regulation of wealthy economies - especially by imposing greater oversight over the transactions of multinational corporations - and for extra finance from the IMF and World Bank.

Argentina President Cristina Kirchner is expected to ask the IMF to compensate for the drying up of liquidity worldwide by giving credits to emerging nations without preconditions, an official said.

For Brazilian Economy Minister Guido Mantega, the task is tricky, as the crisis is still pummeling markets.

"We have to change the tires while the car is still rolling," he said.