Gordon Brown Announces G20 Action Plan

by Jordan Yerman | April 2, 2009 at 07:19 am

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British Prime Minister Gordon Brown is announcing a series of actions to be taken by the G20, including a boost to the International Monetary Fund, a boost to global trade, and a commitment to avoid protectionism.

Disagreements over this action plan persist, of course, both on what action to take, and how far to take those actions. Perhaps fittingly, none of the "team photos" taken show all of the delegates in the same picture. Canadian PM Stephen Harper missed the first photo due to a toilet break, and Italian President Silvio Berlusconi missed the second.

To help countries with severe problems, the International Monetary Fund (IMF) will get extra resources worth up to $750bn (£510bn).

In addition, there will be a deal at the G20 summit to "name and shame" countries that breach free-trade rules.

There will also be sanctions against secretive tax havens.

A member of the German delegation told the BBC's reporter Joe Lynam that the G20 will pledge $1.1tn for multilateral organisations such as the IMF.

Russia's study of an international reserve currency was not presented at the summit.

Strengthened regional currencies would be a basis for the new unit, which could also be partially backed by gold, Russia said in a statement released on the sidelines of the summit.

Markets around the world rallied as the meeting took place, anticipating some sort of deus ex machina, or at least the beginnings thereof.

US markets opened higher after data showed factory orders rose in February. The Dow Jones rose 2.6% in early trade.

Asian shares also rose sharply. Japan's Nikkei 225 index gained 4.4% while Hong Kong's Hang Seng rose 7%.

European markets tracked the gains in Asia, with markets in London, Frankfurt and Paris all up by more than 3%.

Meanwhile, protests continue in the streets of London (see our image gallery). TV crews are interviewing only the most outlandish-looking protestors, and ignoring anyone in a suit and tie. Conversely, if you're at any of the G20 protests and you want to be on TV, be sure to wear a jester hat. TV crews will find you.

Also see:
Who's in the G20?

1 See all footage | View Slideshow

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