A GLOBAL economy edging toward recession and confronting huge political challenges adds urgency to the G20 summit in Mexico this week for strong world leadership of the kind last seen at the height of the 2007-09 financial crisis.
Leaders from the 20 industrialised and developing nations, representing more than 80 per cent of world economic output, are expected to deliver pledges to stimulate growth while balancing those efforts against steps to rein in budget deficits at a meeting in Los Cabos, Mexico, on Monday and Tuesday (June 18-19).
Relieved that pro-bailout parties won a narrow election victory in Greece, world leaders will pile pressure on Europe at the summit to outline a lasting strategy to save the euro currency and end financial turmoil.
“We are waiting for Europe to tell us what it is going to do,” said World Bank President Robert Zoellick.
Europe's debt crisis has underscored the need for a bigger war chest at the International Monetary Fund. Leaders are set to confirm they will double the IMF's firepower with an extra $430bn in loans even though some emerging nations are frustrated with the slow pace of winning more power at the global lender.
The G20 leaders are expected to adopt a Los Cabos Action Plan, pledging to promote economic growth and jobs, investing in infrastructure and promoting trade, while sticking to its pledges to bring down budget deficits.
