The G7 Finance Ministers and Central Bank Governors, along with the heads of International Monetary Fund (IMF), World Bank Group (WBG), Organization for Economic Cooperation and Development (OECD), and Financial Stability Board (FSB) have met in Petersburg in recent days. The group leaders and heads of the global financial institutions announced their collective decision at the end of the meeting and said that they had agreed on concrete actions to deepen multilateral economic cooperation and underlined their commitment to a united response to Russia’s war of aggression against Ukraine. Alongside Ukraine, global food insecurity and COVID-19 universal vaccination drive, the G7 leaders and heads of the global financial institutions discussed a wide range of economic and financial issues confronting global community including challenges pose by the crypto currency, tax issues arising from globalization and the digitalization of the economy, corruption, Money Laundering from Environmental Crime as well as FATF mechanism to combat financial challenges globally.
The G7, a political intergovernmental group of seven most influential and developed nations including the United States, the UK, Canada, France, Germany, Italy and Japan carries utmost importance and has a significant share in setting contours of the global economy, and geopolitical landscapes of the world. The group remained instrumental in protecting the financial, trade and political interests of western nations particularly the United States in the past. The recent meet up of the Finance Ministers, G7 Central Bank governors and heads of global financial institutions would have wide impact on current and future economic situation as well as geopolitical environment in the world.
In fact, the group of influential indirectly controls the global economy and financial system through introduction of regulations and procedures relating to global economy and fiscal affairs with the help of global financial institutions as well as financial and trade watch dogs including IMF, World Bank, Financial Stability Board, Financial Action Task Force (FATF) and other institutions based in Europe and the US. During the Petersburg meeting, the cartel of seven most influential nations stressed on the implementation of the recently revised FATF standards on transparency and beneficial ownership of legal persons, provision of access to information for law enforcement agencies and competent authorities in tracking alleged illicit finances. The group also stressed the FATF for the rapid implementation of the FATF’ travel rule and stronger disclosure and regulatory reporting, along with reserve assets backing stable coins. The Group urged the Financial Stability Board (FSB) to monitor and address financial stability risks arising from all forms of crypto-assets, and regulate the use of transnational crypto-currency. Apparently, the current day global politics is being undertaken by using global financial and economic institutions, multilateral forums, trade cartels and financial regulators including the World Trade Organizations, Financial Stability Board (FSB) and FATF.
Today, west controls the global economy through these institutions and penalizing third world nations unilaterally and unjustifiably on politically motivated charges of corruption, terrorism and money laundering while the so-called supporter of rule of law failed to see scandals of mass corruption, hate crimes, growing extremism and prosecution of minorities in their own societies. Seemingly, biased polices and discrimination in the implantation of the laws had damaged the belief of global community in western institutions, and the current trajectory of the events is gradually pushing the world toward a multipolar system in the days to come.