The London Summit 2009
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The 2009 G20 London Summit was the second meeting of the G20 heads of government/heads of state, which was held in London on 2 April 2009 at the ExCeL Exhibition Centre to discuss financial markets and the
world economy The world economy or global economy is the economy of all humans of the world, referring to the global economic system, which includes all economic activities which are conducted both within and between nations, including production, consumption, ...
. It followed the first G20 Leaders Summit on Financial Markets and the World Economy, which was held in Washington, D.C. on 14–15 November 2008.
Heads of government The head of government is the highest or the second-highest official in the executive branch of a sovereign state, a federated state, or a self-governing colony, autonomous region, or other government who often presides over a cabinet, a gro ...
or heads of state from the G20 attended, with some regional and international organisations also represented. Due to the extended membership, it has been referred to as the London Summit. The policing tactics at the event raised some controversy, particularly over the death of Ian Tomlinson. It was revealed in June 2013 that the Government Communications Headquarters, an intelligence agency of the British government, had intercepted phone calls and monitored computers used by foreign delegates at the summit. Their actions were sanctioned by the British government, and intelligence was passed to British government ministers.


Agenda

As hosts, the British Treasury produced an extended agenda pamphlet proposing the issues to be addressed at the London Summit. The explicit goal was "to start the process of reform so as to manage
globalisation Globalization, or globalisation (Commonwealth English; see spelling differences), is the process of interaction and integration among people, companies, and governments worldwide. The term ''globalization'' first appeared in the early 20t ...
as a force for good in the medium term."Great Britain Cabinet Office. (2008)
Managing the global economy through turbulent times, p. 7
Retrieved 7 April 2011.
# Engaging concerted action to counter falling demand and fragile confidence (although different countries have different room for manoeuvre on monetary policy) # Developing joint actions to prevent further contagion and support vulnerable emerging and developing markets # Working together to address the flaws in the financial and supervisory architecture that crisis has exposed # Strengthening cross-border co-ordination of
financial regulation Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the stability and integrity of the financial system. This may be handled ...
and international financial institutions like the Financial Stability Forum (FSF) and the International Monetary Fund (IMF) # Agreeing to boost world trade and reject protectionism as a way of moving towards more stable and secure global commodities markets # Reaffirming our shared commitment to meet the Millennium Development Goals


Preparation

Leaders of the member countries began to prepare for the London Summit months before the effective date, notably with two official meetings dedicated to that preparation, one held in Berlin, Germany, on 22 February 2009 for European leaders, and another in
Horsham Horsham is a market town on the upper reaches of the River Arun on the fringe of the Weald in West Sussex, England. The town is south south-west of London, north-west of Brighton and north-east of the county town of Chichester. Nearby to ...
, Sussex, United Kingdom, on 14 March 2009 for Finance Ministers.


European leaders summit

Leaders of the four European Union member countries of the G20, the United Kingdom, Germany, France and Italy along with the two largest European non-members, Spain and the Netherlands, met in Berlin on 22 February 2009 to prepare for the London Summit and to co-ordinate their actions. The meeting was organised at the initiative of German Chancellor Angela Merkel. The leaders agreed that markets, financial institutions and the wide range of financial assets they create, and hedge funds should be subject to appropriate control. In addition, they called for effective sanctions against tax havens. They also agreed to impose sanctions against countries that intend to undermine their work. Finally, they advocated the doubling of funds available to the IMF.


Finance ministers summit

Finance ministers and central bankers of the G20 met in Horsham on 14 March 2009 to prepare for the London Summit. To restore global growth as quickly as possible, the participants decided to approve coordinated and decisive actions to stimulate demand and employment. They also pledged to fight against all forms of protectionism and to maintain trade and foreign investments. The members also committed themselves to maintain the supply of credit by providing more liquidity and recapitalising the banking system, and to implement rapidly the stimulus plans. As for central bankers, they pledged to maintain low-rates policies as long as necessary. Finally, the leaders decided to help emerging and developing countries, through a strengthening of the IMF. To strengthen the financial system, the participants proposed to regulate appropriately all important financial institutions, to register all hedge funds or their managers and to force them to provide appropriate information as to the risks they take.Official communiqué
, issued by the G20
They proposed to implement regulation to prevent the systemic risks and to curb business cycles, including the limitation of the leverage effect, which amplifies cycles. They announced new measures to prevent and resolve crises, through the strengthening of the IMF and the FSF. They agreed to control credit-rating agencies and their compliance with the Code of Conduct of the
International Organization of Securities Commissions The International Organization of Securities Commissions (IOSCO) is an association of organizations that regulate the world's securities and futures markets. Members are typically primary securities and/or futures regulators in a national jurisdic ...
; off-balance-sheet vehicles; credit-derivatives market; and non-cooperative territories.


Gordon Brown's pre-summit meetings

In the weeks before the London Summit, UK Prime Minister Gordon Brown visited several countries on three continents to try to secure backing for his goals at the London Summit. During the trip Brown was forced to re-clarify his position on fiscal stimulus after criticism from the Governor of the
Bank of England The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker, and still one of the bankers for the Government of ...
. While speaking at the European Parliament in
Strasbourg Strasbourg (, , ; german: Straßburg ; gsw, label=Bas Rhin Alsatian, Strossburi , gsw, label=Haut Rhin Alsatian, Strossburig ) is the prefecture and largest city of the Grand Est region of eastern France and the official seat of the Eu ...
, France, he was challenged by a Member of the European Parliament over his spending plans. He also visited the US, Brazil, Argentina and Chile. He strongly attacked protectionism saying "One of the messages that must come from next week's summit is that we will reject protectionist countries, we will monitor those countries and name and shame if necessary countries that are not following free trade practices". In the weeks leading up to the London Summit, there had been a growing difference of opinions on the question of implementing further
fiscal stimulus In economics, stimulus refers to attempts to use monetary policy or fiscal policy (or stabilization policy in general) to stimulate the economy. Stimulus can also refer to monetary policies such as lowering interest rates and quantitative easi ...
. The British and the American leaderships were in favour of another round of stimulus packages to try to stimulate the global economy, while the French and German leaderships remained strongly opposed to such measures because of the increased levels of debt which this would cause. On 26 March 2009 the Czech Prime Minister Mirek Topolanek strongly criticised the economic expansion policies of US President Barack Obama.


Attendance

G20 leaders began gathering in London on 1 April 2009. Before leaving for the London Summit, French President
Nicolas Sarkozy Nicolas Paul Stéphane Sarközy de Nagy-Bocsa (; ; born 28 January 1955) is a French politician who served as President of France from 2007 to 2012. Born in Paris, he is of Hungarian, Greek Jewish, and French origin. Mayor of Neuilly-sur-Se ...
suggested that if a meaningful deal was not agreed France would walk out of the summit echoing the "empty chair" gesture of then-French President
Charles de Gaulle Charles André Joseph Marie de Gaulle (; ; (commonly abbreviated as CDG) 22 November 18909 November 1970) was a French army officer and statesman who led Free France against Nazi Germany in World War II and chaired the Provisional Government ...
in 1965. At a joint press conference in London, Brown and Obama said that suggestions of a rift were exaggerated. Sarkozy attended a separate press conference with Merkel in which both repeated calls for the summit to agree on more stringent regulation of financial markets and restated their firm opposition to further financial stimulus packages. On the evening of 1 April the leaders attended a reception at
Buckingham Palace Buckingham Palace () is a London royal residence and the administrative headquarters of the monarch of the United Kingdom. Located in the City of Westminster, the palace is often at the centre of state occasions and royal hospitality. It ...
hosted by Elizabeth II. During a photograph she lightly rebuked the Italian Prime Minister Silvio Berlusconi for shouting too loudly in an effort to attract the attention of President Obama. The story was featured heavily in the Italian media, and was used by opponents to lambast Berlusconi. After the palace reception, the leaders dined at
10 Downing Street 10 Downing Street in London, also known colloquially in the United Kingdom as Number 10, is the official residence and executive office of the first lord of the treasury, usually, by convention, the prime minister of the United Kingdom. Along wi ...
where the food was cooked by Jamie Oliver. The summit proper began on the morning of 2 April and took place at the
Excel Centre ExCeL London (an abbreviation for Exhibition Centre London) is an exhibition centre, international convention centre and former hospital in the Custom House area of Newham, East London. It is situated on a site on the northern quay of the ...
in
Custom House A custom house or customs house was traditionally a building housing the offices for a jurisdictional government whose officials oversaw the functions associated with importing and exporting goods into and out of a country, such as collecting c ...
, east London.


Core participants

The following participants of the London summit include the core members of the G20, which comprises 19 countries and the European Union which is represented by its two governing bodies, the
European Council The European Council (informally EUCO) is a collegiate body that defines the overall political direction and priorities of the European Union. It is composed of the heads of state or government of the EU member states, the President of the E ...
and the European Commission, as well as other nations and regional organisations invited to take part.


Security operation

The security operation,
Operation Glencoe The 2009 G20 London summit protests occurred in the days around the 2 April 2009 G20 London summit. The summit was the focus of protests from a number of groups over various long-standing and topical issues. These ranged from disquiet over econo ...
headed by Commander
Bob Broadhurst Commander Robert James Broadhurst was the 2012 Olympics Gold Command for the Metropolitan Police Service. He was formerly Commander for Public Order and Pan London Operational Support of London's Metropolitan Police Service. Police career Bro ...
, was projected to cost £7.2 million. Six police forces were used during the operation: the
Metropolitan Police The Metropolitan Police Service (MPS), formerly and still commonly known as the Metropolitan Police (and informally as the Met Police, the Met, Scotland Yard, or the Yard), is the territorial police force responsible for law enforcement and ...
, the
City of London Police The City of London Police is the territorial police force responsible for law enforcement within the City of London, including the Middle and Inner Temples. The force responsible for law enforcement within the remainder of the London region, ou ...
, British Transport Police and the forces of
Essex Police Essex Police is a territorial police force responsible for policing the county of Essex, in the East of England. Essex Police is responsible for a population of over 1.8 million people and an area of . The chief constable is Ben-Julian Harri ...
,
Sussex Police Sussex Police is the territorial police force responsible for policing in the whole of Sussex. Its jurisdiction covers the ceremonial counties of East Sussex and West Sussex. The force is headquartered in Malling House, Lewes, East Sussex. His ...
and
Bedfordshire Police Bedfordshire Police is the territorial police force responsible for policing the ceremonial county of Bedfordshire in England, which includes the unitary authorities of Bedford, Central Bedfordshire and Luton. Its headquarters are in Kempston, B ...
. Furthermore, some units from the Ministry of Defence Police have been used. It is the highest security expenditure in British history.


GCHQ interception of foreign politicians communications

In June 2013 '' The Guardian'' revealed that the intelligence agency of the British government, Government Communications Headquarters (GCHQ) spied on foreign politicians visiting the summit by intercepting phonecalls, emails and monitoring computers, in some cases even ongoing after the summit via keyloggers that had been installed during the summit.


Protests

The summit became the focus of protests from a number of disparate groups over various long standing and topical issues. These ranged from disquiet over economic policy, anger at the banking system and bankers remuneration and bonuses, the continued war on terror and concerns over climate change. Although the majority of the protests and protestors were peaceful, instances of violence and criminal damage led to the use of kettling to contain protestors.


Death of Ian Tomlinson

Ian Tomlinson, a newsagent in the City of London, died within a police cordon of the G20 Meltdown protest near the Bank of England. Initially the
City of London Police The City of London Police is the territorial police force responsible for law enforcement within the City of London, including the Middle and Inner Temples. The force responsible for law enforcement within the remainder of the London region, ou ...
denied that any incident with the police had occurred. However video, photographic and eyewitness evidence was published in the media, and the Independent Police Complaints Commission (IPCC) confirmed that Tomlinson had been pushed back by police officers minutes before he collapsed and died of a heart attack. Further allegations that Tomlinson had been hit with a baton were supported when additional video footage became public. The IPCC then later ordered a second post mortem and an independent criminal inquiry,Dodd, Vikram
Ian Tomlinson death: IPCC takes over inquiry from G20 protests police force
''The Guardian'', 8 April 2009.
with the second post mortem finding that although "there is evidence of coronary atherosclerosis" it was "unlikely to have contributed to the cause of death" and that "the cause of death was
abdominal The abdomen (colloquially called the belly, tummy, midriff, tucky or stomach) is the part of the body between the thorax (chest) and pelvis, in humans and in other vertebrates. The abdomen is the front part of the abdominal segment of the torso. ...
haemorrhage".


Outcome

The London summit was a preliminary step in the process through which the G20 evolved to become "the premier forum for discussing, planning and monitoring international economic co-operation".


Financial commitments

The G20 leaders reached an agreement which, in principle, provides US$1.1 trillion to various programs designed to improve international finance, credit, trade, and overall economic stability and recovery. There was some dispute about how best to move forward. On one hand, the UK and the US wanted a large financial stimulus. On the other hand, France and Germany wanted stricter financial regulation. Programs include: * US$500 billion increase in the resources pledged by members to the New Arrangements to Borrow, a facility for the IMF to lend money to struggling economies, * US$250 billion in pledges to increase trade finance, * US$250 billion allocation of special drawing rights (SDR) which give IMF members the right to drawn down foreign currency in a crisis, * US$100 billion in commitments for the multilateral development banks to lend to poor countries.


Regulation

An agreement was also reached to attempt to bring wider global regulation of hedge funds and credit-rating agencies, a common approach to cleaning up bank
toxic asset A toxic asset is a financial asset that has fallen in value significantly and for which there is no longer a functioning market. Such assets cannot be sold at a price satisfactory to the holder. Because assets are offset against liabilities and freq ...
s. The G20 leaders also agreed to establish a financial stability forum working with the IMF to ensure wider global co-operation and to provide an early-warning system for future financial crises.


No green policies

Despite calls for a green new deal from
Greenpeace Greenpeace is an independent global campaigning network, founded in Canada in 1971 by Irving Stowe and Dorothy Stowe, immigrant environmental activists from the United States. Greenpeace states its goal is to "ensure the ability of the Earth t ...
and others and general political hype regarding environmental concerns, none of the US$1.1 trillion stimulus package was allocated for environmental investment, and no other environmental agreements were made.


Decreased influence of the United States

One of the general agreements at the London Summit is that there needs to be more government regulations over businesses, and there was a perception that the US would no longer be as dominant as it has been previously. Commenting on the summit,
Robert Hormats Robert David "Bob" Hormats (born April 13, 1943, in Baltimore, Maryland) is Vice Chairman of Kissinger Associates. Immediately prior he served as Under Secretary of State for Economic Growth, Energy, and the Environment (at the time, entitled Un ...
, vice-chairman of
Goldman Sachs International Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
, said "The U.S. is becoming less dominant while other nations are gaining influence."


Influence of China

The influence of China was very apparent during the G20 with some commentators saying that the G20 was more like a G2.


See also

* G20 * List of G20 summits


Notes


References

* Great Britain Cabinet Office. (2008)
''Managing the Global Economy Through Turbulent Times.'' London: HM Treasury

OCLC 428643726


External links

*
G20 Information Centre

Graphic: G20 is not simply the 20 largest economies

News coverage
from the BBC, news.bbc.co.uk
News coverage
from the '' Financial Times'', ft.com
News coverage
from '' The Guardian'', guardian.co.uk
News coverage
from '' Radio France Internationale'', rfi.fr
News coverage
from '' The Daily Telegraph'', telegraph.co.uk
Tracking the London Summit 2009
blog from The Centre for International Governance Innovation and Chatham House, g20london.wordpress.com
The G-20: A City Survival Guide
by Parmy Olson, ''Forbes'', 30 March 2009. forbes.com {{DEFAULTSORT:G20 summit, 2009, 03, London 2009 in economics 2009 in London 2009,03,London Diplomatic conferences in the United Kingdom 21st-century diplomatic conferences 2009 in international relations 2009 conferences April 2009 events in the United Kingdom Events in London