Global Plan for Recovery and Reform

G20 leaders have committed to make an additional $1.1 trillion available to help the world economy through the crisis and to restore credit, growth and jobs.

Leaders of the world’s major economies also pledged to “clean up” the global banking system while committing not to resort to protectionism.

Announcing the outcome of the G20 Summit, Gordon Brown said the parties at the meeting had drawn up six pledges to shorten the recession.

These included repairing the financial system to restore lending, and doing “what it takes” to restore global growth.

They also pledged to fund and reform international financial institutions, act decisively to kick-start international trade, and to build an inclusive, green and sustainable recovery.

The Prime Minister said:

“We will not hesitate as long as people are losing their jobs and their homes to make the difference that we can by improving their prosperity. Today’s actions of course will not immediately solve the crisis. But we have begun the process by which they will be solved.”

Gordon Brown added:

“These are not just a single collection of actions. This is a collective action – people working together at their best.”

The measures that leaders agreed to in the statement titled Global Plan for Recovery and Reform included:

- trebling resources available to the International Monetary Fund to $750 billion

- ensuring $250 billion of support for trade finance

- using the additional resources from agreed IMF gold sales for concessional finance for the poorest countries

- establishing a new Financial Stability Board (FSB) with a strengthened mandate to collaborate with the IMF to provide early warning of macroeconomic risks

- extending regulation and oversight to all systemically important financial institutions, instruments and markets, including hedge funds

- taking action against non-cooperative jurisdictions, including tax havens

- calling for the heads and senior leadership of the international financial institutions to be appointed through an open, transparent, and merit-based selection process

- refraining from raising new barriers to investment or to trade in goods and services