UN chief wants 'substantial' stimulus at G20

Thursday, March 26, 2009 at 8:57 PM Posted by Beijing News


UN chief Ban Ki-moon on Wednesday urged G20 leaders to agree to a "substantial" global economic stimulus package at their London summit next month.

Following talks here with British Prime Minister Gordon Brown, he told reporters the Group of 20 main industrialized and developing economies "should commit to sustaining an international stimulus package, on top of their own national stimulus packages."

"This international stimulus needs to be of a very substantial size, commensurate with the challenge," the UN secretary general added.

"It needs to comprise aid for the poorest and most vulnerable countries, long-term public lending from the multilateral development banks, and liquidity support not only to least developed countries but also middle-income developing countries."

The UN chief said he had written a letter to all G20 countries outlining his ideas on how to address the global economic and financial crisis and urging them not to lose sight of "the challenges of developing countries, particularly the most vulnerable."

"The United Nations has estimated that the total financing needed to support the needs of developing countries through the crisis is at least one trillion dollars for 2009 and 2010," said the Ban letter, which was released Wednesday.

"While this is a large sum, most of it could be mobilized through existing mechanisms and institutions," it added. "In providing this support you will bolster the global economy, help to underpin your own growth and secure global stability."

Asked about the suggestion, Brown replied: "The combination of what we do will be substantial. But I have got to talk to the different countries about what contributions they are prepared to make. It's not possible to put a figure on that at the moment."

Ban said he and Brown also agreed on "the need to stand firm against protectionism and reinvigorate the Doha round of trade liberalization talks that it delivers real benefits for developing countries."

The two leaders further agreed that G-20 leaders at their April 2 summit "must support a greening of the global economy, including in poorer countries, and that they should commit themselves to sealing a deal at climate change talks in Copenhagen in December this year."

And the UN talks focused "how to reform global rules and institutions so that they reflect today?s economic and political landscape," Ban noted. "I am hopeful that the London summit can send a signal of solidarity and hope to all peoples and countries of the world."

"Doing nothing at the London summit is not an option," Brown concurred.

"Our duty is to help every country and to recognize the interdependence of the world," he added.

World leaders are divided over whether to provide more economic stimulus or to tighten regulation of the system, with Europe seen as being less keen than the United States on further stimulus splurges.

Brown, who earlier in the day met with leading Wall Street figures in New York, was heading next to Brazil and Chile, where he was to attend the Progressive Governance summit in Vina del Mar on Friday.





Egghead : A man poses with the alleged largest egg in the world during a photocall in central London. The egg was laid in the early 17th century, by the now extinct Great Elephant Bird of Madagascarto. AFP/Shaun Curry

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