World avoids economic disaster, Obama
Updated: 05:33, Saturday July 11, 2009
Lasting worldwide recovery 'is still a ways off', US president Barack Obama has declared, but he has also said at the conclusion of a global summit that a disastrous economic collapse apparently has been averted.
Obama says world leaders have taken significant measures to address economic, environmental and global security issues.
'Reckless actions by a few have fuelled a recession that spans the globe,' Obama said on Friday of the meltdown that began in the United States with a tumble in housing prices and drastic slowing of business lending. The downturn now threatens superpowers and emerging nations alike.
He urged national leaders to unite behind a global recovery plan that includes stricter financial regulation and sustained stimulus spending.
'The only way forward is through shared and persistent effort to combat threats to our peace, our peace, our prosperity and our common humanity wherever they may exist. None of this will be easy,' Obama told a news conference at the end of the Group of Eight summit of major economic powers.
The president rejected suggestions that the summit fell short of expectations by failing to call for tough new sanctions on Iran for its crackdown on democracy advocates after its disputed presidential election.
'What we wanted is exactly what we got - a statement of unity and strong condemnation,' Obama said. He said the leaders' declaration was even more significant because it included Russia, 'which doesn't make statements like that lightly.'
Obama said world leaders will reevaluate their posture toward Iran at a meeting in Pittsburgh in September of the world's 20 major industrial and developing economies.
He cited 'the appalling events of Iran's presidential election' and said the world would 'take stock of Iran's progress' and watch its behaviour.
Leaders have made clear that for Iran to take its 'rightful place' in the world, the country must adhere to international standards and behave responsibly, Obama said.
The president was next turning to more photogenic events: a meeting with the Pope and a stop in Africa.
Obama, his wife and senior advisers met Pope Benedict XVI and exchanged gifts shortly before leaving Italy late on Friday for Ghana. Obama and Benedict had spoken by phone but had not met before.
'It's a great honour for me. Thank you so much,' Obama said as he met the pontiff.
Benedict asked Obama about the G-8 summit, eliciting Obama's assessment that it was 'very productive'.
The cameras clattered while they sat down at the Pope's desk.
'Your Holiness, I'm sure you're used to having your picture taken. I'm getting used to it,' Obama said.
Later in the day, Obama was to fly to Ghana on his first trip to sub-Saharan Africa as president, but second visit to Africa. He gave a speech in Egypt last month.
On a pressing issue back home, Obama acknowledged his top legislative priority - health care overhaul - had encountered rocky ground in Congress during his overseas trip, with opposition building among both Republicans and economically conservative Democrats.
But he said he still was confident of getting the measure passed before Congress begins its August recess.
Asked if that timetable was 'do or die', Obama responded: 'I never believe anything is do or die. But I want to get it done by the August recess.'
On the world economy, Obama said rising food prices mean millions more are falling into desperate poverty 'and right now, at this defining moment, we face a choice. We can either shape our future or let events shape it for us.'
'While our markets are improving and we appear to have averted global collapse, we know that too many people are still struggling. So we agree that full recovery is still a ways off.' He said the world leaders felt 'it would be premature to begin winding down our stimulus plans'.
Earlier in the week, the 186-nation International Monetary Fund released an updated economic forecast, predicting that the global economy will shrink 1.4 per cent this year, the worst performance in the post-World War II period. That forecast was slightly worse than the 1.3 per cent decline the IMF predicted in April.
The international lending agency did see prospects improving for next year, with global growth forecast to climb to 2.5 per cent, up from an April projection of 1.9 per cent.
Leaders at Friday's meetings also committed themselves to a $US20 billion ($A25.5 billion) initiative to help farmers in poor countries boost production.
Asked about his appeal to fellow leaders for the aid, Obama said he talked about his father, who was born in Kenya.
'The telling point is when my father travelled to the United States from Kenya to study ... the per capita income of Kenya was higher than South Korea's.'
Updated: 05:33, Saturday July 11, 2009
Lasting worldwide recovery 'is still a ways off', US president Barack Obama has declared, but he has also said at the conclusion of a global summit that a disastrous economic collapse apparently has been averted.
Obama says world leaders have taken significant measures to address economic, environmental and global security issues.
'Reckless actions by a few have fuelled a recession that spans the globe,' Obama said on Friday of the meltdown that began in the United States with a tumble in housing prices and drastic slowing of business lending. The downturn now threatens superpowers and emerging nations alike.
He urged national leaders to unite behind a global recovery plan that includes stricter financial regulation and sustained stimulus spending.
'The only way forward is through shared and persistent effort to combat threats to our peace, our peace, our prosperity and our common humanity wherever they may exist. None of this will be easy,' Obama told a news conference at the end of the Group of Eight summit of major economic powers.
The president rejected suggestions that the summit fell short of expectations by failing to call for tough new sanctions on Iran for its crackdown on democracy advocates after its disputed presidential election.
'What we wanted is exactly what we got - a statement of unity and strong condemnation,' Obama said. He said the leaders' declaration was even more significant because it included Russia, 'which doesn't make statements like that lightly.'
Obama said world leaders will reevaluate their posture toward Iran at a meeting in Pittsburgh in September of the world's 20 major industrial and developing economies.
He cited 'the appalling events of Iran's presidential election' and said the world would 'take stock of Iran's progress' and watch its behaviour.
Leaders have made clear that for Iran to take its 'rightful place' in the world, the country must adhere to international standards and behave responsibly, Obama said.
The president was next turning to more photogenic events: a meeting with the Pope and a stop in Africa.
Obama, his wife and senior advisers met Pope Benedict XVI and exchanged gifts shortly before leaving Italy late on Friday for Ghana. Obama and Benedict had spoken by phone but had not met before.
'It's a great honour for me. Thank you so much,' Obama said as he met the pontiff.
Benedict asked Obama about the G-8 summit, eliciting Obama's assessment that it was 'very productive'.
The cameras clattered while they sat down at the Pope's desk.
'Your Holiness, I'm sure you're used to having your picture taken. I'm getting used to it,' Obama said.
Later in the day, Obama was to fly to Ghana on his first trip to sub-Saharan Africa as president, but second visit to Africa. He gave a speech in Egypt last month.
On a pressing issue back home, Obama acknowledged his top legislative priority - health care overhaul - had encountered rocky ground in Congress during his overseas trip, with opposition building among both Republicans and economically conservative Democrats.
But he said he still was confident of getting the measure passed before Congress begins its August recess.
Asked if that timetable was 'do or die', Obama responded: 'I never believe anything is do or die. But I want to get it done by the August recess.'
On the world economy, Obama said rising food prices mean millions more are falling into desperate poverty 'and right now, at this defining moment, we face a choice. We can either shape our future or let events shape it for us.'
'While our markets are improving and we appear to have averted global collapse, we know that too many people are still struggling. So we agree that full recovery is still a ways off.' He said the world leaders felt 'it would be premature to begin winding down our stimulus plans'.
Earlier in the week, the 186-nation International Monetary Fund released an updated economic forecast, predicting that the global economy will shrink 1.4 per cent this year, the worst performance in the post-World War II period. That forecast was slightly worse than the 1.3 per cent decline the IMF predicted in April.
The international lending agency did see prospects improving for next year, with global growth forecast to climb to 2.5 per cent, up from an April projection of 1.9 per cent.
Leaders at Friday's meetings also committed themselves to a $US20 billion ($A25.5 billion) initiative to help farmers in poor countries boost production.
Asked about his appeal to fellow leaders for the aid, Obama said he talked about his father, who was born in Kenya.
'The telling point is when my father travelled to the United States from Kenya to study ... the per capita income of Kenya was higher than South Korea's.'