UPDATE 2-G20 must do more on financial supervision: IMF head

* Strauss-Kahn: regulation won’t work without supervision

* G20 heads of state to meet in S. Korea this month

* IMF chief warns against new colonialism in Africa

(Adds comments on Africa in paragraphs 7-11)

By Lamine Ghanmi

AGADIR, Morocco, Nov 1 (BestGrowthStock) – The Group of 20 leading
economies must do more to strengthen international supervision
of the financial sector, International Monetary Fund chief
Dominique Strauss-Kahn said on Monday.

G20 leaders are due to meet in South Korea on Nov. 11-12 for
a summit which is expected to focus on tackling imbalances in
the world economy and reducing the risk of a currency war.

Speaking at a conference on human development in the
Moroccan city of Agadir, Strauss-Kahn said the financial sector
— blamed by many for triggering the global economic downturn —
also remained a preoccupation.

“The G20 heads of state who met in London, Pittsburgh,
Toronto and shortly in South Korea, said strongly and loudly for
the population of the world to hear them, they will fix it (the
financial sector),” Strauss-Kahn said.

“The reality is unfortunately more complex than this. The
most difficult part in the field of regulation has been done.”

“But more and more has to be done in the area of
international supervision. You can have the best regulation in
the world but if its implementation is not supervised, it will
not be of any use,” he said.

“NEW COLONIALISM”

In a question-and-answer session at the conference about
development in Africa, the IMF chief said the world needed to
guard against a new form of colonialism as emerging powers
increase their influence on the continent.

He did not single out any countries, but some rights
campaigners and opposition movements in Africa have accused
China of exploiting African resources. Beijing says it brings
investment and aid to areas ignored by other countries.

“If we don’t pay enough attention, it will be like we ended
one century-and-a-half of unequal trade, and we will enter
another era of unequal trade, this time spearheaded by emerging
countries,” Strauss-Kahn said.

“We have to guard against another form of colonialism taking
root by other superpowers who have the wind in their sails in
Africa, who are, I don’t want to use the word colonialism, but
who are setting up a form of dominance.”

These emerging powers were pursuing their objectives in
Africa “using interference with national policy in these
countries, using the size of their state compared to the smaller
ones in Africa”. Strauss-Kahn said.
(Reporting by Lamine Ghanmi; Writing by Christian Lowe; Editing
by Stephen Nisbet)

UPDATE 2-G20 must do more on financial supervision: IMF head