Pittsburgh: Taking on board the concerns of India and other countries, leaders of the G-20 countries comprising the world’s major economies have decided to continue the stimulus package to quicken global economic recovery.
The leaders from the US, UK, France, China and others reached a historic agreement to put the group at the centre of their efforts to build a roadmap for durable recovery, avoiding the financial fragilities that led to the crisis.
“Today, leaders endorsed the G-20 as the premier forum for their international economic cooperation. This decision brings to the table the countries needed to build a stronger, more balanced global economy, reform the financial system, and lift the lives of the poorest,” the White House said in a statement after US President Barack Obama hosted a dinner for the heads of government that included Prime Minister Manmohan Singh.
Amidst demands by some European government heads that an exit policy should be made to end the stimulus package agreed in London, the draft declaration of the summit is believed to have stressed the need for continuance of the booster dose notwithstanding green shoots of recovery seen in some countries.
At the London Summit in April, the G-20 leaders agreed to pump in $1.1 billion to lift the global economy hit by last year’s financial crisis triggering the collapse of many leading financial institutions.
The draft declaration is understood to reflect India’s view that it was too early to adopt an exit strategy from the stimulus package, but left it to individual countries to adopt measures after some time, Indian officials involved in the hectic negotiations said.
Planning Commission deputy chairman, Montek Singh Ahluwalia, was India’s pointsman in the negotiations as Singh met world leaders.
At the dinner last night, the Prime Minister and his wife, Gursharan Kaur, were warmly received by US President Barack Obama and his wife Mitchelle Obama.
After an affectionate handshake, the Prime Minister had some consultations with him for a couple of minutes before they got into deliberations in the environment-friendly Phipps Conservatory and Botanical Gardens, called the ‘Green Heart of Pittsburgh.’
The White House statement said that dramatic changes in the world economy have not always been reflected in the global architecture for economic cooperation.
“This all started to change today. The G20 leaders reached a historic agreement to put the G-20 at the centre of their efforts to work together to build a durable recovery while avoiding the financial fragilities that led to the crisis,” it said.
Establishing the G20 as the premier global economic forum, Obama called on the world’s leaders to reform global economic institutions to meet the needs of an interconnected world economy.
“Today, leaders endorsed the G-20 as the premier forum for their international economic cooperation. This decision brings to the table the countries needed to build a stronger, more balanced global economy, reform the financial system, and lift the lives of the poorest,” the White House said.
This builds on the decision made in April in London to expand the Financial Stability Board to include all the G-20 countries and to add all the G-20 members to the Global Forum on Transparency and Exchange of Information.
The Financial Stability Board is central to our efforts to develop and implement sweeping reforms to transform the system of global regulation. The Global Forum is the primary vehicle in the G-20’s effort to promote greater tax transparency, it said.