Here, South Korea can propose an obvious solution. Align G-20 membership with the composition of the IMF’s executive board. Twenty-four countries sit there. Big ones have their own seats, while smaller ones represent groups of countries, known as constituencies. In many cases, the constituencies rotate the chair among their members. Everyone is represented.
Finally, the G-20 needs an emerging markets caucus. The US and the Europeans are in constant contact, doing their best to agree on positions and table common proposals. Emerging markets, failing to do the same, have punched below their weight. They have allowed the advanced countries to drive the G-20 process.
This is the most delicate issue of all for South Korea. As chair, it needs to act as an “honest broker.” It can’t be seen as giving emerging markets special encouragement. And, given its location, South Korea would be torn between encouraging an emerging-market caucus and encouraging an Asian caucus — for Asia, too, needs to organize itself better to represent its interests in the G-20.
Thus, the initiative might best come from another G-20 country — maybe Brazil, South Africa, or even Russia. But South Korea could usefully drop a hint.
Barry Eichengreen is professor of economics and political science at the University of California, Berkeley.
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