G8 summit to wrestle with "3F "crisis

Leaders of the world's leading industrialized powers are in Japan for the G8 meetings. And the world is focusing on what "prescriptions" they'll write for the financial turmoil and fuel and food price hikes, which have been dubbed the "3F crisis" that's threatening the global economy.

Leaders of the world's leading industrialized powers are in Japan for the G8 meetings.

Since the emergence of the US subprime loan crisis last summer, financial institutions in Western countries have suffered billions of dollars in direct losses. And this has resulted in a slump in major stocks worldwide. G8 finance ministers say the world economy continues to face uncertainty and downside risks persist. They have made repeated calls for a stable financial market, but they provide few choices for concrete action, especially on the issue of the US dollar's exchange rate. Analysts say it's difficult for G8 members to adopt a coordinated currency policy, as they face different economic cycles and inflationary pressures.

Since the beginning of the year, oil prices have soared some 40 percent, staying above 140 US dollar a barrel. Several Asian countries have slashed fuel subsidies, raising prices for millions of consumers. To rein in the soaring oil prices, it's necessary to find the root cause of the hikes. But the countries concerned have so far offered different explanations apparently due to their divergent interests.

The impact of surging food prices is being felt globally, but is most acute for import-dependent, poor and middle-income countries. Many analysts note that high food prices have exacerbated global poverty. And that the G8, comprised of some of the world's richest countries, is obligated morally to take actions to tackle the problem.

Many say global cooperation is the key to tackling the "3F crisis." Just like a recent United Nations report pointed out, the global economic slowdown has threatened the world as a whole. And developed countries and developing countries must step up their cooperation to effectively secure the world economy.