News / USA

World Finance Leaders Cheered by Signs of Recovery

Global economic leaders declared Friday that the world economy is recovering better than expected from its worst recession in decades, and committed to continue efforts to ensure a sustained worldwide rebound.

Friday's meetings of central bank governors and finance ministers of the world's Group of 20 nations in Washington D.C. credited massive government stimulus programs for ending the financial panic that gripped the global economy a year ago.

The meeting's message was similar to one issued last September, when G-20 heads of state laid out broad principles on enacting regulatory reform, securing economic recovery, and rebalancing global growth.

Canadian Finance Minister Jim Flaherty said the work of economic officials in hammering out policy ideas to guide the recovery was far from over. "Following today's meeting, we are well on our way to delivering an initial set of policy options for consideration and agreement for G20 leaders," he said.

G-20 finance ministers will meet again in South Korea in early June, ahead of a leaders summit in Toronto later that month.

Flaherty says a six-page communiqué released at the end of the meeting on Friday reaffirmed the G-20's commitment to financial sector reform and the need to improve the quality and quantity of bank capital, strengthen liquidity standards, and discourage excessive leverage.

The joint statement from world economic leaders did not mention the Greek debt crisis, but it did say that countries were committed to continue to ensure the world's rebound from the recession.

Flaherty said the situation in Greece was discussed during Friday's meetings. He says that it is a "source of concern" and noted that it is undermining the confidence of markets. "It's essential that some steps be taken, that the Greek government work with the IMF (International Monetary Fund) and with the European Commission, of course, to identify a credible, multi-year economic and fiscal program that will meet this problem of fiscal issues," he said.

The debt crisis in Greece threatened to overshadow the G-20 talks, which come a day ahead of meetings on Saturday and Sunday of the International Monetary Fund and the World Bank.

Just before meetings began on Friday the 186-nation IMF issued a statement, promising the organization was prepared to move quickly to review a request from the Greek government for an emergency loan package.

During their meetings G-20 leaders failed to reach an agreement on proposed bank taxes that would help keep taxpayers from being saddled with the cost of future financial bailouts. Those taxes would also be aimed at restraining the kind of excessively risky bets that sent the global economy into its worst tailspin since World War Two.

Canada is leading the opposition to the new bank taxes. Critics of the plan say it would be unfair to banks that did not suffer costly failures during the recent crisis.

Speaking at a news conference after Friday's meetings U.S. Treasury Secretary Timothy Geithner said that he believed there was a broad consensus among G-20 countries on ways to approach a financial overhaul and stressed the importance of the United States setting an example.  "(It's) very important that the rest of the world sees the United States acting forcefully to make sure that we're not going to be a source of instability in the future, that the US can be a source of strength, a source of growth, a source of stability to the global financial system in the future," he said.

As for future global problems, the G-20 repeated a pledge that all countries will work to eliminate dangerous imbalances, but it avoided prodding China to allow its currency to appreciate against the dollar, a key U.S. aim.

The G-20 is composed of the world's wealthiest industrial countries plus major emerging economies such as China, Brazil, India, South Korea and Russia. The United States was represented by Treasury Secretary Geithner and Federal Reserve Chairman Ben Bernanke.

In addition to discussions as a group, the G-20 ministers held a series of separate meetings throughout the day Friday with individual countries.

You May Like

UN Ambassador Power Highlights Plight of Women Prisoners

She launches the 'Free the 20' campaign, aimed at profiling women being deprived of their freedom around the world More

Satellite Launch Sparks Spectacular Light Show

A slight delay in a satellite launch lit up the Florida sky early this morning More

Fleeing IS Killings in Syria, Family Reaches Bavaria

Exhausted, scared and under-nourished, Khalil and Maha's tale mirrors those of thousands of refugees from war-torn countries who have left their homes in the hopes of finding a better life More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Nobel Prize Winner Malala Talks to VOAi
X
August 31, 2015 2:17 AM
Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video Nobel Prize Winner Malala Talks to VOA

Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video War, Drought Threaten Iraq's Marshlands

Iraq's southern wetlands are in crisis. These areas are the spawning ground for Gulf fisheries, a resting place for migrating wildfowl, and source of livelihood for fishermen and herders. Faith Lapidus has more.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Rebuilding New Orleans' Music Scene

Ten years after Hurricane Katrina inundated New Orleans, threatening to wash away its vibrant musical heritage along with its neighborhoods, the beat goes on. As Bronwyn Benito and Faith Lapidus report, a Musicians' Village is preserving the city's unique sound.
Video

Video In Russia, Auto Industry in Tailspin

Industry insiders say country relies too heavily on imports as inflation cuts too many consumers out of the market. Daniel Schearf has more from Moscow.
Video

Video Scientist Calls Use of Fetal Tissue in Medical Research Essential

An anti-abortion group responsible for secret recordings of workers at a women's health care organization claims the workers shown are offering baby parts for sale, a charge the organization strongly denies. While the selling of fetal tissue is against the law in the United States, abortion and the use of donated fetal tissue for medical research are both legal. VOA’s Julie Taboh reports.
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.

VOA Blogs