Divisions lower hopes of G20 breakthrough

The world's leading nations were divided on Friday night over plans to reduce global economic imbalances, with China determined to head off international criticism over its huge foreign exchange reserves.

France had hoped to strike a deal at the weekend on economic indicators that would be used to monitor imbalances, including current account balances, real exchange rates and foreign exchange reserves.

In an urgent appeal for agreement, Nicolas Sarkozy, French president, asked G20 finance ministers and central bank governors to look beyond a "mechanistic approach". "We do not have much time," he said in Paris.

"We will not succeed in everything. But the worst-case scenario would be to refuse to address the real subject -- the international monetary order ... I hope your discussions will not get bogged down in interminable debate on these indicators."

China, however, signalled its opposition to the monitoring plan. "We think it is not appropriate to use real effective exchange rates and reserves," said Xie Xuren, Chinese finance minister.

His comments further lowered expectations that any substantial agreement would be reached at this weekend's G20 meeting, which brings together advanced and emerging economies. The decision to adopt guidelines to help global rebalancing was adopted at the G20 summit in Seoul in November, and is intended to form a central part of this year's meetings.

"Of course you have to look at measures of imbalances," argued Tim Geithner, US Treasury secretary. In Seoul, the US failed to secure precise targets for current account surpluses, with a proposed limit of 4 per cent of gross domestic product.

While Germany supports using the suggested economic indicators for monitoring purposes, like China it opposes any specific targets.

"There is a vast majority of countries that support having these five indicators together," said Jörg Asmussen, Germany's financial state secretary.

Jim Flaherty, Canada's finance minister, said he believed there was agreement on two indicators -- the level of public debt and deficits, and the level of private savings -- but there was difficulty agreeing on the current account measure.

China wants a focus on trade figures, rather than the full current account.

In his opening speech before a working dinner in the Elysée palace, Mr Sarkozy also pushed for more regulation of the commodity markets, and an "innovative financing scheme" to help industrialised nations finance technology transfers to developing countries to deal with global warming.

He said that a "tiny levy on financial transactions" would be such an innovative scheme, appealing directly to Mr Geithner at least to consider the suggestion.

On commodity market regulation, Mr Sarkozy said that all markets should be subject to regulation, or they would be "governed by speculation". "I am suggesting a global strategy combatting volatility and regulating speculation," he said

Mixed-race adoption policy change

There has been much talk of a Mix-race adoption policy whilst I agree in principal with a luke warm welcome the councils will have a long way to go on this subject matter. The council must in the first instance contiune to seek foster perants from BAME communites if it then can not then by all means go down the line of using white couples.

White couples should be allowed to adopt black and ethnic minority children under new guidelines for social workers in England.

Local authorities will be warned not to delay placing a child with a suitable family of a different ethnicity.

Many children from ethnic minorities do not get adopted because social workers have been keen to place them with families of the same background.

The move will be confirmed by Education Secretary Michael Gove on Tuesday.

Actions monitored

The law will not change but the new guidance will state that as long as prospective adopters show that they are able to care for the child then race should not be a factor.

They will also say that preventing families from adopting children of a different ethnic group is "unacceptable".

Each local authority will be closely monitored and those that persistently ignore the advice could have their adoption services contracted out to voluntary agencies.

Current advice states that social workers must give "due consideration to the child's religious persuasion, racial origin and cultural and linguistic background", but does not specify whether race should be regarded as outweighing other factors.

Children's minister Tim Loughton announced in November last year that the government would be updating its guidance on adoption.

Currently, single people, married couples and cohabiting couples can all adopt.

Same sex couples can adopt in England, Wales and Scotland, but not in Northern Ireland.

Adopters in England and Wales must be aged over 21 (18 if one of a couple is the birth parent). There is no upper age limit, but the placing authority must be confident anyone adopting a child will have the energy required and be in good enough health to offer a stable home.

Likewise, if they can prove they have the energy, people will not be disqualified for being disabled, overweight or having a medical condition.

People must also show that the can financially support a child.

A criminal record will not automatically prevent someone from adopting unless they, or someone in their household, has been convicted or cautioned for offences against a child.