Life Beyond Debt

G20 Deal Reached

 

Despite lowered expectations and reports of disagreements, world leaders emerged from the G20 meetings on 2 April with a global stimulus deal worth $1.1 trillion.  President Obama called the deal 'historic' and Prime Minister Gordon Brown described it as a 'coming together of the world'. Most of this money is directed at increasing the finance capacity of the International Monetary Fund. By trebling its core funding to $750 billion, this provides a stronger guarantee for countries that are facing a crisis in their national economies. As such, it acts as a preventative measure to try to stop the crisis from getting any worse. 

Additional support for emerging economies comes through Special Drawing Rights that the IMF will now be able to issue (to a maximum of $250billion available in quotas to its members). This is effectively a global overdraft mechanism, so developing countries using this facility will find themselves deeper in debt.  Some support for less developed countries was provided in the form of a $250billion trade guarantee, to ensure the flow of trade does not dry up and the availability of $100billion through the multilateral development banks (MDB) in loans to low income countries.

Most of the money outlined comes in the form of available credit or guarantee, so only a limited amount – the loans through MDBs – can act as a direct investment to stimulate the struggling economies of the world. 

Domestically, there was very little in the agreement that will have a tangible effect on the day to day lives of people in the UK - a far bigger impact will be felt in the budget due to be announced on 22 April. However, Gordon Brown did not get the coordinated international fiscal stimulus he was originally hoping for so has very little money to spend, especially in the light of Governor of the Bank of England Mervyn King's recent warning about the precarious state of British finances.

35,000 people marched in London on Saturday 28 March for Put People First, a demonstration put on by an alliance of trade unions, religious groups and charities, including Micah Challenge UK. The focus was on "jobs, justice and climate" and the protestors peacefully called on world governments to work together to build a better world. Beforehand a joint church service was held which brought together Christians of all denominations united in a desire to see global justice for the world's poorest people. Worship was led by Andy Flannagan and speakers included Joel Edwards, International Director for Micah Challenge International and Richard Chartres, Bishop of London, among others. 

People around the world have been praying for the G20 as part of Micah Challenge's Rise Up: Global Prayer for a Better World. For more information on Micah Challenge visit www.micahchallenge.org.uk.

Gordon Brown spoke on the G20 at St Paul's Cathedral on March 31, when he outlined the importance of "shared global values." During the event, Mr Brown answered the Evangelical Alliance's Head of Theology Dr Justin Thacker's question: "Is 'doing God' important to our shared global values?" The Prime Minister responded by making reference to an essay written by Australian Premier Kevin Rudd, who drew on Dietrich Bonhoeffer to argue that our Christian faith must inform our politics. While Gordon Brown seems, then, to be open to saying he is doing God, his international and domestic legacy will show whether he puts this into action. Read Justin's Comment is Free article on the subject.

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