Mr Keating, delivering the John Curtin Prime Ministerial Lecture at Perth's Curtin University yesterday, said the G20 had transformed the world from being run in a ''completely unrepresentative way'' by the Group of Seven. ''Despite all that had happened in the post-colonial history of the world following World War II, in places like India and China, continental Africa and South America, the conceit prevailed that the world could be run without reference to these places.''

The world had been run by the victors of World War II with ''outrider roles'' for Germany and Japan.

Mr Keating said the G20 meetings had been held to try save the world from another depression. ''And time will show that timely action did save the world from the horrendous effects of a second depression.''

The reconvened meeting of the G20 in London last April had ''finally nailed the conceit'' of the G7.

''Now, the great surplus states like China sit at the head table, as do the large demographically young states like India and Brazil,'' he said.

''So finally, the world is being remade, to replace the uncooperative and unrepresentative structure I spoke of in this forum seven years ago.''

He also said Australia would have to save more and consume less, ''earning our way out of our current account deficit imbalance''. AAP