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Obama, Lula Discuss Crisis

Obama, Lula Discuss Crisis
Obama, Lula Discuss Crisis
President Barack Obama says the resolution of the current global economic crisis requires a range of approaches, with 2 main objectives: coordinated reform of financial market regulations and sustained stimulus measures to respond to the massive contraction of demand.

During a joint press conference on March 14 with Brazil's President Luiz Inacio Lula da Silva, President Obama noted, "There are going to be other steps to deal with emerging markets." These include helping less developed countries get access to credit and deal with critical issues like food security.

President Lula said that access to credit by nations hardest hit by the economic downturn is an important need that must be addressed at the summit. "We have to have a special credit supply for the poorest countries and the developed countries," he said.

G-20 finance ministers and central bank governors met in London March 13-14 to lay the foundations for the April 2 leaders' summit. They agreed on the need to strengthen the resources of the international financial institutions and enhance their structures in response to the growing global importance of emerging and developing economies.

Further discussing the G-20 agenda President Obama declared that countries do not need to choose between macroeconomic stimulus and systematic reform. The actions of many leading economies, including the U.S., reflect this strategy of addressing current problems and preventing future crises.

President Obama warned that the temptation towards protectionism and trade barriers must be resisted by all countries, including the United States. Economic recovery, he said, will take time, and require trade as an engine for global growth.

"In the meantime, we just have to make sure that we're sending a message to our respective countries that ultimately job growth, income growth, building our way out of this economic crisis, doesn't involve trying to draw a fence around each respective country, but we all have to rise together," he said.