“this is not a trillion dollars spent now”

Everyone’s hero, Robert Peston, has a look at some of the detail in that comminque from the G20. Apparently, the Special Drawing Rights “will be most useful for middle-income, emerging market economies.” And, apparently, Stephanie Flanders says it’s also particularly useful for poor, reserve-starved countries. Meanwhile, Nick Robinson adds this

Remember, of course, that this is not a trillion dollars spent now. It is a pledge to make funds available up to that level if countries can convince international institutions that they have met the necessary criteria. It has nothing to do with the argument about whether our government, or indeed, any other should spend or borrow more.

And, also at the BBC, Steve Schifferes cautions

But it must be borne in mind that providing more resources for the IMF can be only a short-term solution to the immediate crisis now engulfing developing countries.

It is no substitute for a fiscal stimulus, as the money is loaned and must be paid back. Nor will it counter the need for additional development aid to counteract poverty.

But it is a move towards a more global system of international finance.

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  • 6countyprod

    Forget the money! I think we are in bigger trouble with Obama than any of us realise. Why is the leader of the free world bowing to the leader of one of the most intolerant regimes in the world?

  • griffin

    6CP,

    Because however much Barack may despise the regime, Gordon is the leader of the country and diplomatic protocol must be observed.

    Wait, sorry wrong leader, didn’t check the link.

  • 6countyprod

    Getting back to the thread, the whole thing seems to have been a lot of hot air and just a show to try to make people feel that something is being done.

    It is easy to create a headline by making all sorts of promises, but just look at the trail of broken promises there are in relation to, say, fighting malaria in Africa or implementing Kyoto.

    Every developed country will be looking after No. 1, no matter who it affects, and, as usual, it will be countries in Africa which will suffer the most from the economic policies of developed nations, just as they suffer from ‘western’ environmental policies.

  • fin

    them african countries should join the commonwealth I’ve been told it’ll cure all your ills.

  • Scaramoosh

    Granting of G20 funds to the IMF stirs fears amongst Anti-Poverty groups;

    http://www.voanews.com/english/Africa/2009-04-03-voa4.cfm

  • dunreavynomore

    When I was at school a billion was one million million and a trillion another million of those but now we seem to use the American (and French) version which makes a billion just one thousand million and a trillion equal to the old billion. Who gives a damn? Fine, but unless I see the zeroes written down I am never sure just what the figure is and it’s unlikely I’m on my own. Do Britain and Ireland now teach the new system in schools??