G20 plan to avoid future crises
Updated on 25 September 2009
Proposals by Gordon Brown and Barack Obama to co-ordinate global economic policy are expected to be accepted at the G20 summit in Pittsburgh.
The charter will co-ordinate the policies of the world's major economies with the aim of avoiding future crises and generating growth.
A draft communique suggests a framework will allow governments to work together to set their objectives for the future.
Mr Brown said: "Without concerted action there is a danger of years of low growth and low employment but with concerted action, I believe that we can have higher growth and I believe that we can get unemployment down."
The agreement is expected to establish the G20 as the "premier forum" for international economic co-operation with two summits next year in Canada and South Korea and annual summits from 2011 onwards.
Under Mr Brown's proposals countries would be required to submit their economic policies for review to ensure that they were moving in line with the direction set by the G20.
The summit is also expected to agree that the $1 trillion "fiscal stimulus" package to support the flagging global economy, which was agreed by the G20 in London in April, would continue until "a durable recovery is secure".
Mr Brown said that it was essential that the tap was not turned off on the package of worldwide government support if the global economy was not to slip back into recession.
He said: "We don't yet have a recovery. The recovery is not automatic.
"The right thing to do is to maintain the situation where the world is together stimulating each of our economies so that we return to growth.
"It has got to be done, otherwise you cannot be certain we will return to growth."
The leaders are also expected to agree that the bonuses paid out by banks, blamed by many for fuelling the culture of excessive risk-taking which led to the financial crisis, should be linked to their revenues.
