Obama Hails The New World Order
Gordon Brown declared that a $1 trillion package to stimulate economic growth agreed at yesterday's G20 summit in London will ensure that the world pulls out of recession more quickly. Speaking after the one-day summit of the world's richest nations in the Docklands, the Prime Minister said there were "no quick fixes", adding: "Today's decisions will not immediately solve the crisis. But we have begun the process by which it will be solved." He said: "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." The US President Barack Obama played a key role in brokering the agreement, resolving tensions between China and France on tax havens. The $1trn will be made available to countries that run into trouble via the International Monetary Fund (IMF), the World Bank and World Trade Organisation, which will all be beefed up. Half the money will come from IMF loans, with $250bn to finance trade deals and a further $250bn from the IMF's currency reserve. Mr Brown and President Obama originally wanted the G20 summit to call for higher government spending and tax cuts, but they ran into opposition from European nations, led by Germany and France. However, the summit kept open the option of such action in 2010 if the $5trn fiscal stimulus scheme does not work. The IMF will have a new role in monitoring whether countries are doing enough to help the world economy grow at about 4 per cent a year. G20 leaders will meet again to review progress, probably in New York in September, to coincide with the annual meeting of the United Nations General Assembly.