G20 will agree to maintain stimulus efforts: British PM
British Prime Minister Gordon Brown said on Friday that the G20 meeting of world leaders would agree it was too early for exit strategies following the global economic crisis.business Updated: Sep 25, 2009 22:19 IST
British Prime Minister Gordon Brown said on Friday that the G20 meeting of world leaders would agree it was too early for exit strategies following the global economic crisis.
He also outlined how leaders from the world's main developed and developing nations, meeting in Pittsburgh in the eastern United States, would work in future as a means of managing the global economy.
Speaking to reporters before heading into negotiations, he said: "We will agree that it's premature to remove the fiscal and monetary stimulus.
"We will also agree it's absolutely essential as we move to prepare a growth plan where every member of the G20 contributes to how we can meet common and shared objectives."
Countries including Japan, France and Germany have now emerged from recession while experts say the US is likely to do the same soon.
But some warn that growth is partly propped up by fiscal stimulus and warn of looming problems like rising unemployment and government deficits.
Brown said that under the new system, international leaders would meet and set objectives for their economies.
"In this case, the IMF is saying that over the next year, the world should be able to return to close on three percent growth," he added.
"Having set objectives, the world community through the G20 will ask member states to submit their proposals and their plans for meeting these objectives.
"International organizations like the IMF will be involved in reviewing what's submitted and leaders will agree on how they make decisions for the objectives."
He said the change marked the beginning of a new era.
"The old systems of international economic cooperation are over," Brown said. "I believe that's a very important development that can reassure people".
Brown has long championed the need for a new global compact where countries coordinate economic policy more to bolster the world economy and protect it in the event of future crises.