World leaders meeting in Washington have backed a rapid response to the global economic crisis, agreeing on the need for measures to kick-start growth, better financial market regulation and more say for emerging countries.
In a final communique, leaders from nearly two dozen countries also endorsed a series of broad goals to fend off future economic calamities and to revive the world economy.
"We must lay the foundation for reform to help ensure that a global crisis, such as this one, does not happen again," the leaders said in a joint communique issued after the conclusion of the two-day emergency economic
summit.
Officials at the extraordinary Group of 20 two-day summit in a museum in the US capital called for intensified government efforts at bolstering national economies, cooperation on international regulation of the financial system and reform of global structures to aide needy developing countries.
President George W. Bush on Saturday hailed the summit as a success, saying leaders agreed to pursue pro-growth policies, but insisted more work still needed to be done in tackling the financial crisis.
"There was a common understanding by all of us that we should take pro-growth economic policies," Mr Bush told reporters. "It makes sense to come out of here with a firm action plan, which we have, and it also makes sense to say to people that there is more work to be done, and there will be more meetings."
He also declared the US could have gone into a downward economic spiral worse than the 1930s Great Depression without steps already taken in the US.
Among other measures, leaders agreed to reform international financial institutions such as the World Bank and the International Monetary Fund to help developing countries weather the economic storm.
The final communique listed six steps world leaders agreed to take immediately:
- To continue "vigorous efforts and take whatever further actions are necessary to stabilise the financial system.
- "Recognise the importance of monetary policy support, as deemed appropriate to domestic conditions.
- "Use fiscal measures to stimulate domestic demand to rapid effect, as appropriate...
- To help "emerging and developing economies gain access to finance in current difficult financial conditions.
- "Encourage the World Bank and other multilateral development banks to use their full capacity" in support of developing nations.
- "Ensure that the IMF, World Bank and other MDBs have sufficient resources to continue playing their role in overcoming the crisis."
AP