British Prime Minister Gordon Brown outlined the reforms that the largest world economies agreed to in the G20 summit. The call is for greater global economic cooperation to self-regulate and to prevent banking excesses from happening again.
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Some of the reforms mentioned by Gordon Brown:
- New reforms of the global banking system, including institutions such as hedge funds, and other parts of the so-called “shadow banking system” coming under global regulatory control for the first time
- Tighter regulation for credit rating agencies, to prevent conflicts of interest
- A list of tax havens to be published immediately, and sanctions to be deployed against countries that do not comply with anti-secrecy regulations
- Completion of the creation of international colleges of supervisors for national regulators
- An agreement to do whatever is necessary to promote growth in individual countries, allowing for the possibility of the further use of fiscal stimuli in the future
- The injection of an additional $1tn into the global economy through measures including a $500bn increase in the funding available to the IMF, an increase in the availability of money for developing countries through the IMF’s “special drawing rights” to $250bn and a total of $250bn being set aside for trade assistance
- Reform of institutions such as the IMF to allow countries like China to have greater influence. Senior posts at the IMF and the World Bank will open to candidates from the developing world.
- Renewed commitment to the millennium development goals.
- $50bn for the world’s poorest countries.