Emerging market economies should “do their own homework” on key structural reforms before they can ask for solidarity from other developed countries, Germany’s Finance Minister Wolfgang Schaeuble told CNBC.
Speaking ahead of the meeting of the G-20 finance ministers in Sydney, Australia, Schaeuble stressed that the developed world should assume responsibility for emerging countries but “everybody must understand that they must first of all do their own homework and then countries can demand solidarity from others.”
The group of 20 leading global economies is gathering amid market turmoil and uncertainty surrounding the central bank and economic policies of several emerging countries, including South Africa and Turkey.
The German finance minister, one of the strongest proponents of austerity to help countries to correct their economies, said he was speaking from experience following the euro zone debt crisis. But he warned that the emerging economies’ central banks should tread carefully.