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The world’s leading finance ministers and central bank governors pledged last Saturday “to take whatever action is necessary until growth is restored,” suggesting that further action on monetary policy, fiscal stimulus and regulatory reform would be introduced in the months to come. Although the meeting ended without specific new commitments and no country or central bank would be forced to change any existing policy in light of the communique’, the participants representing 85% of the world’s economic output said they were pleased by the spirit of cooperation among the Group of 20 leading and emerging economies.

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The world’s major financial businesses are pushing for urgent action to help the flow of funding to their subsidiaries in emerging markets and providing more support to such regions, especially Eastern Europe. The Institute for International Finance, which represents major financial institutions, intends to lobby world leaders ahead of meetings in London involving the Group of 20 finance officials, central bankers and top private bankers, according to Charles Dallara, the institute’s managing director. Among other things, the large banks would like to see the establishment of a new, powerful and global financial regulation committee, which they see as crucial to improving rules, he said. “We have seen very negative consequences from the measures taken since the fall by governments and central banks,” Dallara said by phone from Zurich, where he was attending an institute board meeting. “There has been no sense of coordination.” Referring to the mix of capital injections, deposit guarantee plans, bad asset purchases and nationalizations undertaken by governments since last summer to try to shore up lenders hit by the plunge in asset values, write-downs and the collapse in confidence.

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The world’s political and business leaders to meet more often to tackle the current economic problems

The world’s Political and Business leaders agreed at the Davos conference to come together more often to share the task of tackling the all the challenges of sinking consumer demand, to climate change.
Last weekend, the conference ended with no consensus on how to solve the world’s economic problems. The leaders are faced with a lack of confidence in western business, industry, and government, by people around the globe. In fact the it was reported in the Financial Times that the delegates “struggled to agree on a single answer to the crisis.”

It was reported that most executives agreed that more regulation was inevitable, but that the new regulations to be limited to, and designed to give business incentives to invest in the future and to stay focused on the consumer and on sustainable energy issues, and that more “collaboration” is necessary going forward.

Noting the theme of the 2008 forum: “The power of collaborative innovation”, contains much of what is required in theme of the 2009 forum, i.e. the shaping of the world, post financial crisis .
Lee McIntire, chief executive of CH2M Hill, an engineering and construction group, said: “Remember, we’re not always right at this conference. When I was here last year, what I kept thinking was, that if I could help my customers with water, energy and sustainability, I’d do really well profit-wise. . . The world has changed a lot since the last Davos forum.”

Trillions of US$s will have to be spent to bring confidence back into the system, thus bringing forth the question, where will this money come from?

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