G20 leaders seal $1tn global deal (BBC)
Posted by Enkill_Eridos on April 15, 2009
Leaders of the world’s largest economies have reached an agreement to tackle the global financial crisis with measures worth $1.1 trillion (£681bn).
To help countries with troubled economies, the resources available to the International Monetary Fund (IMF) will be tripled to $750bn.
There will also be sanctions against secretive tax havens and tougher global financial regulation.
And the G20 has committed about $250bn to boost global trade.
US President Barack Obama said the summit could mark a “turning point” in the pursuit of economic recovery and made progress in reforming a “failed regulatory system”.
NEW FUNDING PLEDGES
$500bn for the IMF to lend to struggling economies
$250bn to boost world trade
$250bn for a new IMF “overdraft facility” countries can draw on
$100bn that international development banks can lend to poorest countries
IMF will raise $6bn from selling gold reserves to increase lending for the poorest countries
“By any measure the London summit was historic.
“It was historic because of the size and the scope of the challenges that we face and because of the timeliness and the magnitude of our response,” he said.
Prime Minister Gordon Brown said there was “no quick fix” for the world economy but there was a commitment to do whatever was necessary.
“This is the day that the world came together to fight back against the global recession, not with words, but with a plan for global recovery and for reform and with a clear timetable for its delivery,” Mr Brown said.
Another G20 meeting will be held in New York in September to check on progress, the BBC has learned.
The deal was announced shortly before the European stock markets closed and gave leading indexes a significant boost.
London’s FTSE 100 index of leading shares ended 4.3% higher. In Paris, the Cac 40 jumped 5.4% and in Frankfurt, the Dax rose 6%.
On behalf of the G20, Mr Brown announced the following steps:
- Bankers’ pay and bonuses will be subject to stricter controls
The IMF has been one of the biggest beneficiaries of the G20 summit.
The resources it has to help troubled economies will be increased to $500bn.
An overdraft facility will also be increased to $250bn (in the IMF’s currency, so-called Special Drawing Rights) that all members can call upon.
Mr Brown said that there would be a crackdown on tax havens to prevent the loss of sorely needed tax revenue.
Shortly after the summit finished the Organisation of Economic Co-operation and Development published a blacklist of countries deemed uncooperative.
It said Costa Rica, Malaysia, Philippines and Uruguay had not made any commitment to respecting international standards.
“We have agreed tough standards and sanctions for use against those who don’t come into line in the future,” Mr Brown said.
President Obama was said to have played a key role in brokering the agreement on tax havens, resolving differences between France and China.
French President Nicolas Sarkozy said that the conclusions of the G20 summit were “more than we could have hoped for”.
HAVE YOUR SAY
Nathan McConnell, Grantsburg, US
Earlier, there had been suggestions of rifts between France and Germany and the US and the UK.
The US and UK emphasised the need for public spending to ease the crisis while France and Germany were keen for tougher financial regulation.
Mr Sarkozy had threatened to walk out of the meeting if it did not yield concrete results.
German Chancellor Angela Merkel also praised the outcome.
She said the new measures would give the world a “clearer financial market architecture” and the agreement was “a very, very good, almost historic compromise”.
Her finance minister, Peer Steinbrueck, said he was pleased that the G20 statement did not oblige states to launch further economic stimulus packages.
Protesters gathered outside the summit, but in smaller numbers than during Wednesday’s demonstrations in London’s financial district.
Several hundred staged “noisy but calm” protests near the Excel centre, representing groups including the Stop the War Coalition and CND.
And about 400 more demonstrators were boxed in by police outside the Bank of England in London’s financial district, during angry but peaceful protests.
More than 100 people were arrested over the two days of protests – 86 of them on Wednesday, police said.
A small group of protesters gathered earlier at the London Stock Exchange, but later dispersed.
The G20 countries have pledged $100bn in aid for developing countries, more than expected.
The money will be dispensed through multilateral lenders such as the Asian Development Bank.
The measure that could make the most difference in the short term for the poorest countries is the availability of $250bn of trade credit, says BBC international development correspondent David Loyn.
It will enable goods currently rotting on the quayside in Africa to move again, he says.
BBC business editor Robert Peston said the tougher financial regulation announced by the G20 was a significant step.
He said it sounded the death knell for the freewheeling Anglo-American way of banking and conducting financial markets.
However, he said the measures would not get the world out of recession overnight.
Now for my two cents: This summit is making a lot of people parinoid here is my take on how this summit to help stabilize our global economy that effects everyone on this earth. It is a good thing. Will this summit bring together a New World Order or One World Government. No a one world government is an impossible idea. Like communism and democracy it sounds good on paper but there can never be no such thing. After WW2 the UN was going to be the One world government. Now a One World Financial system does not sound so bad. That would cut out one big reason for wars..money. A one world government would put an end to wars and in a crazy persons fairy tale land it is possible. But from a realistic stand point it would never work for more than about 2 seconds before a full revolt happens. Plus the Earth already had one unified government at one time called the Christian Church. During the Dark Ages it is evident that Kings and queens were just puppets of religions own agendas. Realistically a One World Government would never work China would never agree to it, the muslim nations certainly would not agree to it. And despite what hacks and frauds say a one world religion is also a very HUGE improbability. Because everyone has a different definition of the truth it is an impossibility. If it was possible the One world religion would be Christianity in all of its forms. Since the worlds majority are Christians. And to those Revalations end of times sayers, the bible had a very specific number by all accounts is 144,000 which in Numberology that is a significant number. But the number of believers in the world right now exceeds that amount. The only way that prophecy which is the catalyst for almost everything is that maybe the billions of people subscribing to Christianity is wrong. Or Revalations itself was averted, visions are finicky and sometimes just because you have knowledge of future events that knowledge can change things drastically. Dogmatic religion is the reason the human race does not go forward. With all of that being said, my two cents is the world is not going to end because 20 of the worlds biggest countries are getting together and helping the global economy out by pooling money together. In my opinion Obama is not selling out the tresury. And quite frankly alot of pastors said Bill Clinton was the anti-christ even though he brought our national debt to an all time low. And after his term of office our national surplus dissappeared in one day. To someone’s half-assed idiotic plans for a war that is impossible to win. And any strategy thatcould have improved our chances in succeeding the person that proposed that was forced to resign. Obama had to pick up the mess that the president that broke the world made. He is making good progress and the outcome of this G20 summit shows that he is trying to make good on promises he made. It shows that he is trying to work with other countries. To the people that think we need to be insulated from the rest of the world and any way of trying to work with other countries to get us as human beings through this Global Crisis is trying to set up a One World Government I have a sentence that describes you perfectly. You are an idiot. Us being insulated and shunning other nations is what broke the world. The only way to fix it is to work with other nations in a peaceful way. This will not lead to a One World Government because niether a One World GOvernment or Religion is realistic. In a fantasy world where there are not varibles then yes it is possible but this world is full of varibles that come out of no where. If a new world government is tried to be set up it will be rebelled against. If a new unified world religion tries to be sprung up it will be crushed by the free thinking non sheeple of the world. (A majority of christians are blue pilled Sheeple. Following commands of someone they think is on a higher spiritual level as anyone else. That is the cult way of thinking.) The only thing this summit did was help fix the problems with the Global economy and is that really a bad thing?