Emergence Of New World Order

G20 summit: Gordon Brown announces 'new world order' - April 3

The Prime Minister claimed to have struck a "historic" deal to end the global recession as he unveiled plans to plough more than $1 trillion into the world economy. "This is the day that the world came together to fight back against the global recession," he said. "Not with words but with a plan for global recovery and reform."

Barack Obama, the US President, hailed the deal as a "turning point" for the global economy which would put it on the path to recovery.

Under the $1.1 trillion (£750 billion) agreement, which followed several days of intense negotiation, struggling economies will be offered money provided to the International Monetary Fund (IMF) by wealthier nations. The G20 leaders also agreed restrictions on bankers' pay, rules to target tax havens and hedge funds and a new financial early warning system to prevent a future economic meltdown.

"Today's decisions, of course, will not immediately solve the crisis. But we have begun the process by which it will be solved," Mr Brown said. "I think a new world order is emerging with the foundation of a new progressive era of international co- operation,"

The success was echoed by Mr Obama. "By any measure the London summit was historic," he said. "It was historic because of the size and the scope of the challenges that we face and because of the timeliness and magnitude of our response."

Mr Sarkozy, who had threatened to walk out of the talks unless he got action on tax havens, said a "page has been turned" on the old financial model, the "Anglo-Saxon model".

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April 2 - G20 leaders seal $1tn global deal
Article: One World Government

The G20 summit has ended in a global deal to boost world growth. Is it the beginning of a new world economic order? But there are hints, in the rhetoric and in substantive measures, that a new way of running the world economy may be emerging from the G20 process.

President Barack Obama said as much when he acknowledged that the 'Washington consensus' of unfettered globalisation and deregulation was now outmoded, and called for a more balanced approach to regulating markets rather than letting them run free. And it is the shift in the US position, which was previously the strongest opponent of international regulation, that has opened the way for a much broader attempt to regulate the financial sector.

And in the new Financial Stability Board, which will now incorporate all G20 members, there is the potential for a powerful new global financial regulator.

Even more significant is the increased power given to the international financial institutions, the World Bank and the International Monetary Fund, who have been subcontracted by the G20 to monitor and run many of their policies.

Mr Strauss Kahn said that he believed that the G20 was shaping up as the board of governors for the world economy, and said he favoured an even bigger grouping to give more representation to poor countries. It may be that after the crisis is over, the G20 disbands as a group. But given the belief by governments on both sides of the Atlantic that global cooperation is now essential for economic growth, the likelihood is that it will carry on and attempt to strengthen its role.

With fits and starts, the world may be moving to a recognition that as the economy has become global, the power of governments can only be effective if they too become more international in scope.