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British PM: "We want a world without protectionism"
2009-09-22 12:51

British Prime Minister Gordon Brown said here on Monday that "we want a world without protectionism."

When asked by Xinhua at a press briefing for foreign media held at Downing Street 10, he said "we must remember the lessons from past recessions and that the more trade is, the better chances the resumption of growth and the better the chances of jobs."

Brown will fly to New York Tuesday for the United Nations General Assembly and related meetings and then chair the G20 Summit in Pittsburgh on Thursday and Friday this week.

As for the proposals to be made by the UK at the upcoming summit, Brown suggested that there should be a global compact framework for jobs and growth, and it should involve all members of the G20.

"We need as a group to agree on our objectives, and we have a rigorous process of making sure that the objectives of each country are compatible with all," Brown said. "This is the best guarantee of high growth in the future and it's the best guarantee that we can create higher levels of employment around the world."

He also suggested that political leaders should meet regularly to decide on global actions and that they should have a process by which they will consult each other regularly and decide what each country can do to contribute to high growth in the world.

"But within the context of stable finances, we will look at how each continent can make contribution towards positive growth and we'll have a better way of early warning for crises that may happen and a better way of resolving crises if they start to develop," he said.

"As we move forward, it is important to recognize that there are huge opportunities for us, by working together to achieve even more," he said." Although in the last 60 years we have had international institutions which have been very effective in their own way, we have not yet had political agreements that are essential for all the major countries of the world to work together to maintain and sustain growth and jobs."

"This is a new way of governing the world economy," he emphasized.

He said the global economy had been prevented from moving from recession to depression by the actions jointly taken to stimulate the economy through fiscal policies and interest rate cuts.

As a result, Brown said the world growth is higher than it would have otherwise been. The fiscal stimulus that each country has implemented has benefited other countries and the next stage is that two things should be done together.

First of all, he said "we must prevent the recession from continuing and wrecking the potential recovery. We have to take action together to continue the measures that have led to the creation of jobs and prevention of further deterioration of growth."

He said the second thing "we've got to do, is we've got to have a pathway for the future so that the world can look forward to years ahead where we will be able to prevent low growth and high unemployment."

So the task of Pittsburgh is to stabilize the economy and inject resources into the economy to prevent a depression, he said. "We've got to make sure that we do not put the recovery at risk and make sure also that we move growth forward for the years to come."

He believed that further global actions on growth and jobs would be taken at the Pittsburgh Summit. "It is a global agreement on bonuses remuneration, a global agreement on how we deal with tax havens, the global agreement on the best practices for supervision of the banking system, that is an essential way of stabilizing the world economy and making it possible to have the right foundations for growth," said Brown.

As for the lessons from the crisis, he said "global problems need global solutions, global solutions need global coordinated action, and that we must create a compact framework that is necessary for the action to be effective in the future."

He concluded that there are several big challenges facing the world: climate change, terrorism, nuclear proliferation, moving out of recession and building a stronger world economy.

Source:Xinhua