Obama hails G-20 summit as 'turning point'

LONDON - Concluding his first international summit, President Barack Obama hailed agreements at the emergency meeting of world powers Thursday as a "turning point in our pursuit of global economic recovery." But he cautioned, "There are no guarantees."

Obama said the heads of industrial countries that met in London agreed on "unprecedented steps to restore growth and prevent a crisis like this from happening again."

He spoke shortly after G-20 leaders pledged an additional $1.1 trillion in financing to the International Monetary Fund and other global institutions and declared a crackdown on tax havens and hedge funds. The leaders announced the creation of a supervisory body to flag problems in the global financial system — but did not satisfy calls from the U.S. and others for new stimulus measures.

Despite that failure, OBama called the one-day London gathering "very productive" and historic because of the scope of the challenges the world faces in righting the economic crisis that's wreaking havoc on virtually every country.

"The challenge is clear. The global economy is contracting," Obama said.

'Asleep at the switch'
In a one-hour news conference packed with media from around the world, Obama said that "we're starting to see some restoration of America's standing in the world." He had been asked about diminished esteem under his predecessor, George W. Bush.

"I do not buy into the notion that America can't lead in the world," Obama said, but he added that it is "very important for us to be able to forge partnerships as opposed to dictating solutions."

He acknowledged that some participants during the summit made comments that seemed to blame America and Wall Street for triggering the crisis that has spread around the world.

"It's hard to deny that some of the contagion did start on Wall Street," Obama said, asserting that some firms took "wild and unjustified risks" and some government regulators were "asleep at the switch."

Slideshow   Eye on G-20 World leaders as well as demonstrators gather in London as the G-20 leaders discuss the economic slowdown. more photos

But he said there were problems in other parts of the world as well.

As for the summit, he praised the G-20 nations for rejecting protectionism that hampers foreign trade and could deepen the economic crisis, and he urged global unity, saying, "We owe it to all of our citizens to act."

Still, he said, "it is hard for 20 heads of state to bridge our differences."

"I think we did OK," he said. "When I came here it was with the intention of listening and learning but also providing American leadership."

In a communique capping the dramatic one-day gathering, the leaders of the Group of 20 nations announced the creation of a supervisory body to flag problems in the global financial system.

They also bridged the gap between the U.S. and some European nations over how far to regulate the market and curb the excesses that sparked the global economic crisis.

"Today the largest countries of the world have agreed on a global plan for economic recovery and reform," said the host, British Prime Minister Gordon Brown. His announcement was quickly followed by similar ones by the French and German leaders.

French President Nicolas Sarkozy, who earlier had threatened earlier to walk out if unsatisfied with the outcome, also praised Obama.

"There were moments of tension," Sarkozy said. "Never would we have thought to get as big an agreement."

German Chancellor Angela Merkel called the measures "a very, very good, almost historic compromise" that will give the world "a clear financial markets architecture."

No panacea
Obama said the document the G-20 produced and actions that will follow "reflect a range of our priorities."

Video   Obama addresses world's press at G-20 April 2: President Barack Obama addresses the world's press at the G-20 summit in London. MSNBC

"We wanted to make sure we had a strong, coordinated response to growth" and "we thought it was important we had a strong, coordinated regulatory response," Obama said — and added that both were achieved.

When asked, however, he could not point to an individual summit accomplishment that would help recession-battered Americans beyond general points such as fighting protectionism and making the global economy work together.

"This is not a panacea, but it is a critical step," Obama said.

He declined to specify where the White House compromised, saying the final communique reflected a consensus of world leaders.

"Each country has its own quirks or issues that a leader may decide was really really important," Obama said.

He said he was committed to "forging a consensus instead of dictating our terms" and argued that the United States acting alone would only be "halfway effective, not even half."

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