Gordon Brown has said that the nations of the world must show they can work together by coming up with a joint solution to the economic crisis and successfully concluding a new world trade deal.
Speaking to guests at the Council on Foreign Relations in New York on Friday, the PM reiterated his view that protectionist measures represented “the road to ruin” when it came to kick-starting the world economy.
Instead, all governments should look to match monetary policy, such as the cutting of interest rates, with a fiscal policy of investing to stimulate economic activity, he said.
The PM said:
“Countries should be involved, if possible, in a coordinated fiscal and monetary stimulus, if possible countries across borders agreeing that the fiscal stimulus they take will complement the stimulus in other countries…
“Instead of just muddling through dealing with this crisis as people think we are doing at the moment, we have to show people that we are actually making adjustments in the proper way to this global age.”
· Read the transcript: Speech to the Council of Foreign Relations
The PM reiterated his stance in a number of bilateral meetings later in the day in Washington, DC. Mr Brown met Brazilian President Lula da Silva, Japanese PM Taro Aso, US Treasury Secretary Hank Paulson and Australian Prime Minister Kevin Rudd in quick succession in preparation for the G20 financial summit to be hosted by President Bush on 15 November.
Following his meeting with Mr Rudd at the British Embassy, Mr Brown said he wanted a timetable for reform of the IMF to be “agreed and implemented” following the summit.
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