G20 leaders opened up the coffers of the world's biggest economies to pledge US$1 trillion in emergency aid for struggling countries in a bid to restore global trade, the biggest move to come out of an emergency summit on the economy.
Leaders took turns Thursday in calling the G20 summit in London an immense success, with a consensus on moves to recover from a global recession.
Prime Minister Stephen Harper said leaders have come up with a strong plan to fix the economy, making what he described as an "unprecedented" effort to work together.
"The declaration is very clear that globalization, that open markets, that liberalized trade remain the essential base of our economic system and will be the basis of any recovery and future economic growth," he said Thursday during his closing news conference in London.
U.S. President Barack Obama echoed Harper's praises for the successes of the summit, calling it a "turning point in our pursuit of global economic recovery."
"The steps that have been taken are critical to preventing us sliding into a depression," Obama said.
Obama admitted he didn't get everything he wanted, as leaders failed to form an agreement on more economic stimulus, but highlighted the $1 trillion in aid.
"This is not just charity. These are future markets for all countries and future drivers for economic growth," Obama said.
The G20 leaders also agreed for much more stringent financial regulations, something both French President Nicolas Sarkozy and German Chancellor Angela Merkel were adamant about.
"We now have been able to rally around a message of unity," she told a news conference.
The agreement on financial regulations includes international accounting standings, regulation for debt-rating agencies and hedge funds and a crackdown on tax havens. They weren't many specific details, suggesting it could be some time before the agreement becomes a legal reality.
The summit's host, British Prime Minister Gordon Brown, said in a statement, "This is the day that the world came together to fight back against the global recession, not with words but with a plan for global recovery and for reform and with a clear timetable for its delivery."
Brown announced the Organisation for Economic Co-operation and Development (OECD) would publish a list of tax havens that are non-compliant.
The leaders also agreed on a "global approach" to dealing with impaired or toxic assets, Brown said.
Harper said the G20's response to the financial crisis was faster, stronger and more co-ordinated than ever before and should have a positive effect.
Harper also said Canada is still in a much stronger position than most countries, with what he called the "soundest banking system in the world," strong balance sheets and a good record on inflation.
He acknowledged that the recession is deeper now than it was in November, but said the situation is much more stable than it was then.
Despite not getting the stimulus agreement he wanted, the summit is being hailed a success for Obama, his first step on to the global stage as president.
"I think we did OK," Obama told reporters. "When I came here, it was with the intention of listening and learning, but also providing American leadership. And I think the document that has been produced as well as concrete actions reflect a range of our priorities.
"In life there are no guarantees; in economics there are no guarantees," he added.
Obama used his heavyweight status to mediate a dispute between China and France over tax havens.
He first took Sarkozy aside privately and then Chinese President Hu Jintao, before bringing the men together for a private meeting.
Officials said the move was essential to breaking a stalemate between the two countries.
US$1 trillion in aid
Brown said the money will be available to the world economy through the IMF and other institutions.
"These actions give us confidence that the global economy can return to trend growth even faster then the IMF is now predicting," Brown told reporters in London.
CTV's Ottawa Bureau Chief Robert Fife, reporting from London, said the money is actually in the form of loans -- "mainly to rescue eastern European countries that are struggling with enormous debt problems and their governments could collapse."
The other part of the money is going in the form of trade credits to help the "poorest of the poor countries."
Canada will reportedly contribute US$10 billion to the IMF to help developing countries and will give another $200 million to the IMF as part of an effort to inject liquidity into the trade finance market, sources told The Canadian Press.
An official told CP that Canada's total contribution to the IMF for 2009-10 now totals US$22 billion. However, there is no additional fiscal cost to Canada as the new funds come in the form of a loan and are considered both an asset and a liability, said the official.
Global markets responded favourably to the G20 announcement, with both Toronto's S&P/TSX and New York's Dow Jones industrial averages surging upwards Thursday.
Leaders agreed to hold another summit, but did not name a time or place.
With files from The Canadian Press and The Associated Press
