G-20 London Summit: Stabilty - Growth - Jobs -- A Special Feature
The London Summit of the G-20 nations concluded on 2nd April 2009, with a note of optimism, despite gloomy forecasts and open differences of opinions. Leaders of the G20 largest developed and emerging economies agreed on to a $1.1 trillion program to restore global growth and rebuild a financial system, ravaged by the worst financial crisis since the 1930s.
The main outcome of the summit is a communiqué which expresses the intentions of the leaders present. These included additional support to the International Monetary Fund, blocking protectionism, regulation of credit-rating agencies, expansionary monetary policy and international cooperation on improving international financial regulation. The communiqué also refers to — tax havens and hedge funds. Full Text of the Statement From G-20 Summit, London... Click Here
The key points in the final G20 communique include:
* "To treble resources available to the IMF to $750 billion, to support a new SDR allocation of $250 billion, to support at least $100 billion of additional lending by the MDBs (multilateral development banks), to ensure $250 billion of support for trade finance, and to use the additional resources from agreed IMF gold sales for concessional finance for the poorest countries." That constitutes "an additional $1.1 trillion program of support to restore credit, growth and jobs in the world economy."
* "To establish a new Financial Stability Board (FSB) with a strengthened mandate, as a successor to the Financial Stability Forum (FSF), including all G20 countries, FSF members, Spain, and the European Commission. The FSB should collaborate with the IMF to provide early warning of macroeconomic and financial risks and the actions needed to address them."
* "To endorse and implement the FSF's tough new principles on pay and compensation and to support sustainable compensation schemes and the corporate social responsibility of all firms."
* "To take action against non-cooperative jurisdictions, including tax havens. We stand ready to deploy sanctions to protect our public finances and financial systems."
* "To extend regulatory oversight and registration to Credit Rating Agencies to ensure they meet the international code of good practice, particularly to prevent unacceptable conflicts of interest."
* "We reaffirm the commitment made in Washington: to refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organization (WTO) inconsistent measures to stimulate exports. We will minimize any negative impact on trade and investment of our domestic policy actions including fiscal policy and action in support of the financial sector. We will not retreat into financial protectionism, particularly measures that constrain worldwide capital flows, especially to developing countries."
Full Text of the Statement From G-20 Summit, London... Click Here
Reactions to G-20 London Summit April 2, 2009... Read More
About Group of Twenty (G-20)... Read More
G-20 Summit, Washington Dc, November 14–15, 2008... Read More
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