Upbeat G20 faces credibility test on mkts

The leaders agreed their summits would supplant those of the Group of Seven rich nations as the high table of global policy making,promising to give rising powers such as China more say in rebuilding and guiding the world economy.

While G7 states were right to accept the inevitable dilution of global economic power caused by the rapid industrialisation of poorer countries,analysts said the size and diversity of the group would probably complicate policy coordination.

“There are a lot of cooks in the kitchen … I would wait until we declare victory,” said Simon Johnson,a former chief economist of the International Monetary Fund. “They have to prove their value and legitimacy.”

Challenges to the group’s new mantle lie everywhere,from inertia on climate change to scepticism in global financial markets.

G20 nations will remain in the spotlight at the IMF meetings in Istanbul next month,another summit in South Korea in November and the U.N. climate change talks in December.