Mexico wants more say for emerging world in finance

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MEXICO CITY, Nov 11 (Reuters) - Leaders of the world's emerging economies need a bigger say in guiding the global financial system, Mexican Finance Minister Agustin Carstens said on Tuesday.

World leaders from the G20 group of developed and biggest emerging economies will meet later this week in Washington to discuss ways to reshape global institutions and fight the world's worst financial crisis in 80 years.

A showdown appears to be brewing ahead of the meeting over whether broader groupings like the G20 should supplant the elite, rich-country G7 as the main forum governing the world economy.

"It would be very important to strengthen the international financial system ... with a foundation of institutional agreements in which emerging countries can sit down at the same table with developed countries," Carstens said.

Carstens, who was speaking in a joint press conference with French Economy Minister Christine Lagarde, said it was also important that countries act together with economic stimulus measures.

France is leading a drive for tough new regulations and oversight in financial markets.

Lagarde did not elaborate on specific proposals France would bring to the Washington meeting, though she said mechanisms needed to be developed that could warn about trouble brewing in financial markets.

At a meeting of G20 finance officials last weekend, Brazil led a push to supplant the G7 with larger groupings like the G20. In a sign of potential future wrangling over how much power to cede to developing nations, Canada's Central Bank Governor Mark Carney said the G7 remained effective.

Carstens did not specify which institutions Mexico would like changed or given a bigger role.

After more than two months of relentless selling cut a third off the value of world stocks .MIWD00000PUS, central banks have launched an unprecedented round of interest rate cuts to help prevent economies from sliding deeper into recession.

Such drastic action, which has helped to lift stocks, is prompting calls for governments to follow up central banks by delivering tax cuts and fiscal stimulus.

"Different countries should be able to implement macroeconomic policies that stimulate growth ... Preferably these would be coordinated," Carstens said. (Additional reporting by Luis Rojas Mena; Editing by Bernard Orr)