Sunday, April 05, 2009

Sunday Share: Global plan for Recovery And Reform

Some of you may have already read this (or a simular article). But I figured I'd share it anyway.


Thursday 2 April 2009
Global Plan for Recovery and Reform

G20 leaders have committed to make an additional $1.1 trillion available to help the world economy through the crisis and to restore credit, growth and jobs.
Leaders of the world’s major economies also pledged to “clean up” the global banking system while committing not to resort to protectionism.
Announcing the outcome of the G20 Summit, Gordon Brown said the parties at the meeting had drawn up six pledges to shorten the recession.
These included repairing the financial system to restore lending, and doing “what it takes” to restore global growth.
They also pledged to fund and reform international financial institutions, act decisively to kick-start international trade, and to build an inclusive, green and sustainable recovery.
The Prime Minister said:
“We will not hesitate as long as people are losing their jobs and their homes to make the difference that we can by improving their prosperity. Today’s actions of course will not immediately solve the crisis. But we have begun the process by which they will be solved.”
Gordon Brown added:
“These are not just a single collection of actions. This is a collective action – people working together at their best.”
The measures that leaders agreed to in the statement titled Global Plan for Recovery and Reform included:
- trebling resources available to the International Monetary Fund to $750 billion
- ensuring $250 billion of support for trade finance
- using the additional resources from agreed IMF gold sales for concessional finance for the poorest countries
- establishing a new Financial Stability Board (FSB) with a strengthened mandate to collaborate with the IMF to provide early warning of macroeconomic risks
- extending regulation and oversight to all systemically important financial institutions, instruments and markets, including hedge funds
- taking action against non-cooperative jurisdictions, including tax havens
- calling for the heads and senior leadership of the international financial institutions to be appointed through an open, transparent, and merit-based selection process
- refraining from raising new barriers to investment or to trade in goods and services


Read the full statement: Global Plan for Recovery and Reform
Speeches and transcripts: G20 press conference


Taken from:


Intense Guy said...

You know...the economy to me, in simple terms is "making stuff" people need and later, after the needs are taken care of, want.

None of these plans seem to hit on "making stuff" people in dire need, things like more food, medicine, shelter and security from war. I can only imagine what one trillion dollars would mean to those unfortunates that live in the mud without food or clean water. Nor can I imagine how the "good will" such humanitarian aid would produce if it were only done properly (which admittedly it probably never has been).

Surely we could build sustainable shelters, water purification methods, and tools for farming instead of "bailing out bankers, lawyers, and politicians"?

whimsical brainpan said...

What Intense Guy said!

ChicagoLady said...

I'm just wondering where this $1.1 trillion is going to come from.

"- extending regulation and oversight to all systemically important financial institutions, instruments and markets, including hedge funds"

What that means is that financial and insurance institutions like Citi, AIG, DeutscheBank and others that are global, will be under the jurisdiction of this Board, instead of their home country.

One more step to giving up our sovereignty to someone else.

Tori_z said...

My thoughts exactly. I don't actually understand how this helps the average person, let alone the poorer people of the world. It sounds to me like a case of, "I don't know what to do, so let's throw some money around so we look like we're trying to do something."
It also sounds to me like they're concentrating on things most likely to affect themselves. Hence the helping out of banks.

I too am curious as to where this money is coming from.