Australian Treasurer Joe Hockey
Australian Treasurer Joe Hockey (R) speaks alongside US Treasury Secretary Jack Lew at a joint news conference at the G20 Finance Ministers meeting in Sydney.Reuters

The finance ministers and central bank chiefs from the Group of 20 developed and emerging nations are urged to focus on developing fresh strategies to help global economy recover from the 2008 financial crisis at a meeting to be held in Sydney this weekend.

There are signs of improvement in both the US and Europe that are hard-hit by the financial crisis, but growth remains stagnant and fragile in these regions.

In addition, the US decision to taper its massive stimulus has raised concerns in emerging markets, which suffered from massive asset outflows resulting in a plunge in the value of currencies and shares.

Australian Treasurer Joe Hockey said the meeting should consider reforms to the international taxation framework to expand private sector growth across the G-20 economies. Australia is presiding over the meeting this year.

"The world must now go for growth. Now is the time to focus on stimulating economic growth and we will focus on policies to improve investment, trade and of course, that means more employment," Hockey said.

"Analysis by international organisations such as the IMF, the World Bank and the OECD suggest that actions in these areas along with policies to improve private sector competition offer a big gain for the global economy."

"Growth in advanced economies, particularly in the United States and Japan looks to be picking up and the Euro area seems to be resuming growth again. But we're not out of the woods yet. The global economic recovery is not yet sufficiently strong or broadly based to create enough jobs and to continue lifting people out of poverty," he added.

Debate on Fed Tapering

Developed nations including the US, Germany, Britain and Japan said that emerging economies should handle the spill-over effects of the Fed tapering by themselves.

"Emerging markets need to take steps of their own to get their fiscal house in order and put structural reforms in place," US Treasury Secretary Jack Lew said ahead of the ministerial meetings.

German's Wolfgang Schaeuble and Japan's Taro Aso had similar opinions on the matter, according to Reuters.

Meanwhile, developing nations from South Africa to Turkey to Russia, who have witnessed a slide in their currencies due to the tapering effect, wanted the Fed to calibrate its stimulus cut to mitigate the impact on their economies.