In the words of valedictory of the host, British Prime Minister, Gordon Brown, "This is the day that the world came together to fight back against the global recession, not with words but with a plan for global recovery and for reform and with a clear timetable for its delivery."
The summit produced a six-point communique as well as two detailed annexes on how a tighter regulatory regime would work. They agreed to have another G20 meeting in due course to check on the progress of the conclusions reached today. The leaders did not take up the biggest point of contention, whether to boost national economic-stimulus packages. Instead, they focused on two other significant areas; the funds available to international institutions to help poor or struggling economies to withstand the crisis, and tougher global regulation of financial markets. 1. The International Monetary Fund $250 billion reserves will be tripled to enable it to better help stricken countries in the developing world - as well as others, like Mexico, who are nervous that their economy could be swept up in the global turmoil through no fault of their own. 2. The leaders also agreed to provide an additional $250 billion in guarantees for export credits and other trade finance, which have dried up in the past few months and led to a drastic drop in global commerce. 3. The other key decision concerns financial regulation and corporate behavior, under which hedge funds and other financial-market players will be subject to far greater and properly coordinated international scrutiny. 4. Big banks with activities in several countries will also be subject to greater and properly coordinated international scrutiny. 5. Tax-havens which are not complying with international standards on exchanging information will be publicly named and shamed. 6. On executive pay and compensation, the gathered world leaders accepted a series of recommendations by their finance experts that would lead to sharper oversight of compensation and bonuses and tie them more specifically to long-term performance. Of all countries in Africa, only South Africa was deemed civilized enough and have its acts together, to be invited to the summit. The hitherto "giant", now clay-footed humpty-dumpty of Africa, Nigeria, has been relegated to the background; having been deemed incompetent, disorganised, directionless, clueless and a total disappointment to the gathered world's finest? How has the mighty of Africa fallen? Only the rudderless leadership of and in Nigeria can supply the answer? It is also instructive that Iran, North Korea and Venezuela were not invited to the summit? Israel was also a no-show; with Saudi Arabia being the only country in the Middle East to be invited to the summit.
Just a little G20 factoid:- the group of twenty (G20) represents the most important industrialised states and emerging economies of the world. They include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States of America and the European Union. The Managing Director of the International Monetary Fund (IMF) and the President of the World Bank, plus the chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank, were also invited on an ex-officio basis. The G20 all together, is home to more than 60 percent of the world’s population, accounts for about 90 per cent of global gross national product and 80 per cent of the entire world trade (including EU intra-trade). Icheoku says, the G20 is by implication, is capable of independent existence devoid of the uninvited "leeches" of the world? Say it ain't so!
At the end of the summit, every participant was satisfied with the resolutions reached; and in the words of Australian Prime Minister Kevin Rudd, "People beforehand said there would be a divide, but in fact there was an overwhelming drive toward achieving real action, real commitments and real time-lines." The United States President Barack Obama when asked his take on the summit, quipped "I think we did O.K." Once again congratulations to the world's super dupers!