"New world order" proclaimed by G20
03-04-2009
The leaders of the world's 20 leading economies have agreed to impose new and stricter financial rules and tripple the war chest of the IMF to fight the global economic crisis.
New banking rules will see hedge funds brought under supervision and tax havens brought to book, while ratings agencies will come under closer scrutiny and companies forced to link executive salaries more closely to performance.
Closing the G20 summit, the British Prime Minister, Gordon Brown, said "a new world order" was emerging. US$1 trillion will be pumped into the troubled global economy through extra funding for groups like the International Monetary Fund.
Mr Brown said an additional $500 billion would be allocated for the IMF, plus $250 billion in IMF Special Drawing Rights and billions to boost trade.
Japan and the European Union will each contribute $100 billion to the new IMF war chest, while $40 billion will come from China.
Mr Brown said this will inevitably lead to a greater say in the IMF for China and other new contributors.
