The G20 summit which took place in London on April 2 gathered the finance ministers and central bankers of 20 countries, including the seven major industrialised nations. The EU was represented by the Czech Republic, and the International Monetary Fund and World Bank also participated. 20 or 25 years ago, one could not even imagine that such different countries with such different economies, such different mentalities and historic traditions, would sit at the table and could agree in such a difficult situation on how to act, especially so quickly. Of course 20 years ago, they didn't have this global financial crisis.
Gordon Brown, UK prime minister, host of the summit, said the meeting marked the emergence of a “new world order”, as he unveiled what leaders claimed was a $1,100bn package of measures to tackle the global downturn, including support for lower income countries and a $250bn plan to boost the international money supply. "We will take action to build a stronger, more globally consistent, supervisory and regulatory framework for the future financial sector." "I think the new world order is emerging, and with it the foundations of a new and progressive era of international co-operation."... He just loves to say it again and again, his voice becomes deeper and he doesn't blink when he makes a pause and says: "new world order". It makes me sick. He is just their loud speaker, he is nobody but he is so proud that he's a part of it. Gordon Brown wanted a second fiscal stimulus but did not get one. However, he will be pleased that the agreement was universally accepted by the G20. He will also privately be delighted at the mood he helped create.
Nicolas Sarkozy, France’s president, who had threatened to walk out of the talks unless he got action on tax havens, said that agreement on a new regulatory regime and crackdown on tax havens showed that “a page has been turned” on an era of post-war “Anglo- Saxon” capitalism. Nicolas Sarkozy played the old summit game of talking tough - and this time he seemed to get his own way. There was never a chance of "empty chairing" his old pal Mr Brown, and he can take home strict new restrictions on tax havens. "The G20 countries have decided on a commitment by heads of state and government to strengthen regulation and supervision of financial activities. That was a priority for Germany and France." "A new world is emerging before our eyes," wrote Le Monde in its editorial."A world less Anglo-Saxon and less liberal. The irony is that it's in Washington (in November 2008) and in London that the ultraliberal bracket opened 20 years ago by Ronald Reagan and Margaret Thatcher is closing."President Barack Obama described the summit’s measures as “bolder and more rapid than any international response that we’ve seen to a financial crisis in memory” and predicted that they would mark “a turning point in our pursuit of global economic recovery”. "By any measure the London summit was historic," he said. "It was historic because of the size and the scope of the challenges that we face and because of the timeliness and magnitude of our response." China: One of the big winners and emerging as the key power broker that the old order now turn to for help. They offered up the cash for the new IMF package, but can be certain of some of the benefits that the London deal with bring.The London Summit 2009Subscribe in a reader