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Obama encourages global cooperation to overcome economic crisis
The global financial system and world economy are expected to dominate the agenda at a meeting of the G20 in South Korea, despite fears that summit in Seoul could descend into a clash between China and the US about “currency wars” and trade imbalances.
US president Barack Obama encouraged leaders to work together for global economic recovery, whilst defending the US’s policy announced last week, of injecting $600 billion into the economy to boost recovery.
"In a prudent, stable way, we want to make sure that we are boosting growth rates at home as well as abroad," Obama said. "It is difficult to do that if we start seeing the huge imbalances redevelop that helped to contribute to the crisis that we just went through."
The pact agreed three years ago between the US and South Korea has failed to be concluded ahead of the main G20 meeting, in an attempt to seal a free trade deal.
"We agreed that more time is needed to resolve detailed issues and asked trade ministers to reach a mutually acceptable deal as soon as possible," South Korean President Lee Myung-bak said after meeting the US president.
Critics have argued that America's economic policies, specifically creating new money to pursue quantitative easing (QE), could also be a form of currency manipulation for its own ends.
The G20 group comprises the world's 19 leading national economies, plus the European Union.
It was formed in 1999, and held its first meeting that year.
The G20 currently meets twice a year, but this is set to reduce to one meeting from 2011.
