G20 – The Trillion Dollar Deal to Save the World
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Historic commitment to redress the balance in crippled world economies.
The World’s 20 richest nations came together yesterday and pledged $1.1 trillion to help combat the global recession.
As the summit came to a conclusion in London last night, there was a feeling of solidarity and, dare we dream to say, positivity? A corner has been turned in the global economy, and the leaders who were present at the gathering enjoyed a knowing glance that this was the beginning; “the day the world fought back against the recession,” claimed the Financial Times.
British Prime Minister Gordon Brown can breathe a huge sigh of relief after the hype surrounding the summit. The eyes of the world were on London, and as the gracious host, Mr Brown did not disappoint. US President Barack Obama described the events as: “unprecedented steps to restore growth and prevent a crisis like this from happening again,” reported the BBC.
The pledged sum of $1.1 trillion (£745 billion) will contribute $750 billion to the International Monetary Fund (IMF), $250 billion to reignite trading between nations and $100 billion for lending to the world’s poorest nations through international development banks.
It wasn’t all good news for the British and American alliance. Both Brown and Obama had led the charge for a second fiscal stimulus and argued passionately for its approval. Their efforts were thwarted by France and Germany, forcing money instead to be pledged to developing countries rather than the richer countries in an effort to kick-start economies.
Despite the apparent show of unity, divisions still remain over how best to deal with the economic crisis. “Low expectations have been met,” commented The Times, as it reduced yesterday’s events to little more than ballsy rhetoric and back-slapping. However, even if it is all hot air and no action, the important thing to take from the G20′s commitments is “the oxygen of confidence” that Gordon Brown so desperately needed in order to regenerate growth in the economy.
There are still problems to be resolved, and the task ahead is difficult; at least now the G20 can tackle the problem with a lung full of hope.
I don’t think we will ever exit these issues of global recession with a monetary system in place where each single dollar carries a debt with it. There is too much power in the wrong places. People are all the same in every country, I say let’s drop kick politics – too much corruption as everyone is aware of from the state of things now.