Thursday, April 02, 2009
Poor rich, they are merciless God, by Francis Chartrand
The Heads of State and Government at the G20, Thursday 2 April in London, reached several compromises to reform global finance and the economy faces its worst recession since the Second World War. "Today the world has united to fight against the global recession. Not with words but with a plan of global recovery and reform with a clear timetable," said British Prime Minister Gordon Brown.
A joint statement entitled "A new world order" was made public late in the day, picked up by British Prime Minister Gordon Brown, who listed the items.
IMF resources will be multiplied by three and brought to 750 billion or 500 billion financed by "the" new money "provided by Member States. They will add 250 billion from a rights issue of additional tirage spéciaux (DTS), the unit of account of the IMF, enabling it to increase its own resources. The Fund may also sell some gold to help the poorest countries affected by the crisis. Moreover, leaders of the IMF and the World Bank will be appointed on merit, eliminating the implicit agreement that reserved the Europeans IMF and the World Bank to the Americans.
$ 250 billion will be spent to assist the financing of trade to boost world trade. The G20 also gives 100 billion dollars in assistance to development banks, such as the Asian Development Bank and its African counterpart. We arrive to a total of 1 100 billion dollars for recovery and assistance to financial institutions.
The leaders of the G20 also announced on Thursday, by the Organization for Economic Cooperation and Development (OECD), the list of uncooperative tax havens, thus satisfying the demand of France and Germany. The final communiqué of the summit says that "the era of bank secrecy is over" and that "sanctions will be taken against uncooperative tax centers.
Members of the G20 have agreed to implement increased controls of rating agencies and hedge funds. In terms of remuneration in the financial sector, "new rules" on salaries and bonuses at the global level will also be taken to avoid taking excessive risks. No details have been made on these two points.
The G20 reiterated that "help to raise new barriers" protectionist, until the end of 2010. G20 leaders have finally agreed to meet again by the end of the year, "said Brown. Mr Sarkozy for his part stated that the G20 would be third after the next UN General Assembly, scheduled for September.
At the end of the summit, a new world order will emerge from the economic crisis, said British Prime Minister, while German Chancellor Angela Merkel said it was "a compromise history for an exceptional crisis." Nicolas Sarkozy has, he said "happy" at a press conference that the summit went "beyond what we could imagine."
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Labels: Francis Chartrand, Global Econony, International Monetary Fund
# posted by Francis Chartrand @ 5:04 PM 
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