The White House just issued the Leaders Statement from the Pittsburgh Summit. Here's the preamble (and the full version is here):
1.
We meet in the
midst of a critical transition from crisis to recovery to turn the page on an
era of irresponsibility and to adopt a set of policies, regulations and reforms
to meet the needs of the 21st century global
economy.
2.
When we last
gathered in April, we confronted the greatest challenge to the world economy in
our generation.
3.
Global output
was contracting at pace not seen since the 1930s. Trade was plummeting. Jobs
were disappearing rapidly. Our people worried that the world was on the edge of
a depression.
4.
At that time,
our countries agreed to do everything necessary to ensure recovery, to repair
our financial systems and to maintain the global flow of capital.
5.
It worked.
6.
Our forceful
response helped stop the dangerous, sharp decline in global activity and
stabilize financial markets. Industrial output is now rising in nearly all our
economies. International trade is starting to recover. Our financial
institutions are raising needed capital, financial markets are showing a
willingness to invest and lend, and confidence has improved.
7.
Today, we
reviewed the progress we have made since the London Summit in April. Our
national commitments to restore growth resulted in the largest and most
coordinated fiscal and monetary stimulus ever undertaken. We acted together to
increase dramatically the resources necessary to stop the crisis from spreading
around the world. We took steps to fix the broken regulatory system and started
to implement sweeping reforms to reduce the risk that financial excesses will
again destabilize the global economy.
8.
A sense of
normalcy should not lead to complacency.
9.
The process of
recovery and repair remains incomplete. In many countries, unemployment remains
unacceptably high. The conditions for a recovery of private demand are not yet
fully in place. We cannot rest until the global economy is restored to full
health, and hard-working families the world over can find decent jobs.
10.
We pledge today
to sustain our strong policy response until a durable recovery is secured. We
will act to ensure that when growth returns, jobs do too. We will avoid any
premature withdrawal of stimulus. At the same time, we will prepare our exit
strategies and, when the time is right, withdraw our extraordinary policy
support in a cooperative and coordinated way, maintaining our commitment to
fiscal responsibility.
11.
Even as the work
of recovery continues, we pledge to adopt the policies needed to lay the
foundation for strong, sustained and balanced growth in the 21st
century. We recognize that we have to act forcefully to overcome the legacy of
the recent, severe global economic crisis and to help people cope with the
consequences of this crisis. We want growth without cycles of boom and bust and
markets that foster responsibility not recklessness.
12.
Today we
agreed:
13.
To launch a
framework that lays out the policies and the way we act together to generate
strong, sustainable and balanced global growth. We need a
durable recovery that creates the good jobs our people
need.
14. We need to shift
from public to private sources of demand, establish a pattern of growth across
countries that is more sustainable and balanced, and reduce development
imbalances. We pledge to avoid destabilizing booms and busts in asset and credit
prices and adopt macroeconomic policies, consistent with price stability, that
promote adequate and balanced global demand. We will also make decisive
progress on structural reforms that foster private demand and strengthen
long-run growth potential.
15. Our Framework
for Strong, Sustainable and Balanced Growth is a compact that commits us to work
together to assess how our policies fit together, to evaluate whether they are
collectively consistent with more sustainable and balanced growth, and to act as
necessary to meet our common objectives.
16.
To make sure our
regulatory system for banks and other financial firms reins in the excesses that
led to the crisis. Where
reckless behavior and a lack of responsibility led to crisis, we will not allow
a return to banking as usual.
17. We committed to
act together to raise capital standards, to implement strong international
compensation standards aimed at ending practices that lead to excessive
risk-taking, to improve the over-the-counter derivatives market and to create
more powerful tools to hold large global firms to account for the risks they
take. Standards for large global financial firms should be commensurate with
the cost of their failure. For all these reforms, we have set for ourselves
strict and precise timetables.
18.
To reform the
global architecture to meet the needs of the 21st
century. After this
crisis, critical players need to be at the table and fully vested in our
institutions to allow us to cooperate to lay the foundation for strong,
sustainable and balanced growth.
19. We designated
the G-20 to be the premier forum for our international economic cooperation. We
established the Financial Stability Board (FSB) to include major emerging
economies and welcome its efforts to coordinate and monitor progress in
strengthening financial regulation.
20. We are committed
to a shift in International Monetary Fund (IMF) quota share to dynamic emerging
markets and developing countries of at least 5% from over-represented countries
to under-represented countries using the current quota formula as the basis to
work from. Today we have delivered on our promise to contribute over $500
billion to a renewed and expanded IMF New Arrangements to Borrow (NAB).
21. We stressed the
importance of adopting a dynamic formula at the World Bank which primarily
reflects countries' evolving economic weight and the World Bank's development
mission, and that generates an increase of at least 3% of voting power for
developing and transition countries, to the benefit of under-represented
countries. While recognizing that over-represented countries will make a
contribution, it will be important to protect the voting power of the smallest
poor countries. We called on the World Bank to play a leading role in
responding to problems whose nature requires globally coordinated action, such
as climate change and food security, and agreed that the World Bank and the
regional development banks should have sufficient resources to address these
challenges and fulfill their mandates.
22.
To take new
steps to increase access to food, fuel and finance among the world's poorest
while clamping down on illicit outflows. Steps to
reduce the development gap can be a potent driver of global growth.
23. Over four
billion people remain undereducated, ill-equipped with capital and technology,
and insufficiently integrated into the global economy. We need to work together
to make the policy and institutional changes needed to accelerate the
convergence of living standards and productivity in developing and emerging
economies to the levels of the advanced economies. To start, we call on the
World Bank to develop a new trust fund to support the new Food Security
Initiative for low-income countries announced last summer. We will increase, on
a voluntary basis, funding for programs to bring clean affordable energy to the
poorest, such as the Scaling Up Renewable Energy Program.
24.
To phase out and
rationalize over the medium term inefficient fossil fuel subsidies while
providing targeted support for the poorest. Inefficient
fossil fuel subsidies encourage wasteful consumption, reduce our energy
security, impede investment in clean energy sources and undermine efforts to
deal with the threat of climate change.
25. We call on our
Energy and Finance Ministers to report to us their implementation strategies and
timeline for acting to meet this critical commitment at our next meeting.
26. We will promote
energy market transparency and market stability as part of our broader effort to
avoid excessive volatility.
27.
To maintain our
openness and move toward greener, more sustainable growth.
28. We will fight
protectionism. We are committed to bringing the Doha Round to a successful
conclusion in 2010.
29. We will spare no
effort to reach agreement in Copenhagen through the United Nations Framework
Convention on Climate Change (UNFCCC) negotiations.
30.
We warmly
welcome the report by the Chair of the London Summit commissioned at our last
meeting and published today.
31.
Finally, we
agreed to meet in Canada in June 2010 and in Korea in November 2010. We expect
to meet annually thereafter and will meet in France in 2011.
Posted
Sep 25 2009, 04:51 PM
by
Timothy McNulty