World economic ills take centre stage at summit

Watford, England: The faltering global economy was the focus of a summit on Saturday where British Prime Minister Gordon Brown hosted some of the world's important decision makers.

At the summit, which drew leaders from around the world and included former US President Bill Clinton, issues ranging from climate change to international development were discussed. But the main focus appeared to be on continuing problems in the world economy.

Brown said the current crisis in the world economy was the largest challenge of its type in modern times. "[It] is the biggest global economic restructuring I think we've seen since the industrial revolution," said Brown. "So the world is a world of change." He said the 20 leaders at the meeting supported his plans for the International Monetary Fund to become an "early warning system" for signs of trouble in the world economy.

"We can't allow the situation to emerge again," Brown said. The world economy has been in a state of gloom since credit markets froze on fears of bad lending in the US mortgage markets. IMF chief Dominique Strauss-Kahn said the conditions were unlikely to improve soon.

"The forecasts we are going to release in a few days are not really improving," Strauss-Kahn told those gathered at an exclusive country club on the outskirts of London. "Most of the downside risks identified six months ago have materialised." He predicted a global growth rate of just 3.7 per cent next year - describing it as one of the lowest levels in the past two decades.