The Hindu Business Line : G-8 Summit: Lots of issues to ponder over

As the world's major industrial powers gather together under the G-8 auspices with the leaders of emerging economies such as Brazil, China, India, Mexico and South Africa joining them in tow at St Petersburg in Russia beginning on Saturday, there are no dearth of issues for them to ponder over and resolve.

In the wake of tumultuous developments on international security, trade and energy issues as well as concerns about Moscow's political direction, the leaders of the free world have a host of problems on the table to tackle, policy analysts say.

Only on July 13, the oil price surged to a new high of nearly $76 a barrel as the Israeli-Lebanese conflict heightened global tension, talks with North Korea collapsed and concerns mounted over supply from major oil exporter Nigeria after two explosions at a pipeline.

With Russia in control of enormous oil and gas reserves and global oil prices ruling at record levels, Moscow is playing host for the first time to a G-8 summit.

As India is particularly hit by the soaring oil price with its imported dependence on crude substantial, the Prime Minister, Dr Manmohan Singh, who is to take part in the Outreach Session on July 17 is likely to play a proactive role in ensuring energy security and stability of supply for developing countries by and large.

First opportunity

For Russia this is the first opportunity for it to chair the respected global forum. In a welcome message to visitors to the official site of Russia G-8 presidency this year, the Russian President, Mr Vladimir Putin contends that Russia regards it as its duty to give a fresh impetus to efforts to find solutions to key global problems in energy, education and healthcare.

Other major international issues to focus on during Russia's Presidency include counter-terrorism and proliferation of weapons of mass destruction, the settlement of regional conflicts, the development of the global economy, finance and trade as well as protection of the planet.

Meanwhile, the Deputy Chairman and Secretary of the Summit's organising committee, Mr Sergel Vyazalov, said on Friday that the St Petersuburg G8 summit preparations took more than 10 billion roubles, roughly $300 million - half of that on improving the host city's infrastructure and slightly over five billion roubles for the summit itself.

Reports also suggest that top US and Russian trade negotiators have been working seriously to clinch a deal on Russia's admission to the World Trade Organization (WTO) in time for an announcement by the two Presidents during the summit.

The occasion would also provide an opportunity to leaders to ensure some progress in the stalled world trade liberalisation talks in Geneva.

The WTO Chief, Mr Pascal Lamy, will reach St Petersburg on Sunday to talk to G-8 leaders and also to speak on July 17 at a G-8 session on trade chaired by the German Chancellor, Ms Angela Merkel.

As the leaders of India, China, Brazil and South Africa who all belong to G-20, a bloc of developing countries, too would be present, the WTO would leave no stone unturned to see that the deadlock is resolved in the Doha round talks. It may be noted that only two weeks ago, the green room meeting of the WTO trade majors to effect a framework on negotiations in agriculture and non-agricultural market access (NAMA) ended in a stalemate as they failed to reach a deal on formulas for cutting down customs duties by developing countries and farm subsidies by the rich world.

So as the world's powerful political leaders from both the rich and emerging economies gather for their annual consultations, hopes run high that on the crucial issue of escalating energy price as also resuming the stalled trade talks under the WTO, the assembled leaders would make genuine efforts to ensure that the world economy gets the much-needed respite from major problems currently plaguing it.

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