US PRESIDENT Barack Obama last night said that after bringing the international financial system "back from the brink", the Group of 20 developed and emerging countries had taken steps to "lay the groundwork for long-term prosperity".
At the closing G20 press conference in Pittsburgh, Mr Obama recalled the dire situation six months ago, when many were warning of a second Great Depression.
Millions of jobs have been saved through the G20's actions, he said, and financial markets have come back to life. "We leave here today more confident and more united in advancing prosperity for all of our people," the president said.
But Mr Obama added: "We cannot stop there . . . We cannot tolerate the same old boom and bust economy of the past. We cannot grow complacent."
He announced the adoption of a "framework for sustainable and balanced growth" that will allow G20 members to assess each other's policies. The summit also agreed on broad measures to keep banks and financial institutions in check. "Never again should the schemes of a few" put millions of people at risk, Mr Obama said. Bankers "must be accountable" and "must not count on taxpayer dollars". He said executive pay will be tied to long-term profits.
Mr Obama endorsed the establishment of the G20 as the world's leading economic policy-making forum. "We agreed to reform the system of economic governance," he said. "The G20 will take the lead in building a new approach. We will shift more responsibility to emerging economies." Commenting on demonstrators who vandalised businesses during the summit, Mr Obama said: "Many of the protests are directed generically at capitalism," he said.
"I fundamentally disagree with their view that the free market is the source of all ills. If they had been paying attention, what they would have heard was strong recognition that it is important to make sure that the market is working for ordinary people, that government has a role in regulating the market."
In their closing communique, the G20 pledged "to sustain our strong policy response until a durable recovery is secured" and promised to "act to ensure that when growth returns, jobs do too".
They said they will "avoid any premature withdrawal of stimulus" but prepare exit strategies and "when the time is right" withdraw government intervention "in a co-operative and co-ordinated way, maintaining our commitment to fiscal responsibility."
A Chinese official hailed a shift in voting rights at the International Monetary Fund, which the EU opposed, as "a bright spot" at the summit. An Argentine official said earlier that emerging economies would receive a 5 per cent increase in voting rights under the agreement.
The issue of pay and bonuses for bankers was one of the most hotly disputed at the summit, with the US refusing to put specific caps on remuneration. "Europeans are horrified by banks, some reliant on taxpayers' money, once again paying exorbitant bonuses," said European Commission president José Manuel Barroso.
