Special Report: Global Financial Crisis

Chinese President Hu Jintao (5th R, front), U.S. President George W. Bush (6th R, front) and other leaders from the Group of Twenty (G20) members pose for a group photo during the G20 Summit on Financial Markets and the World Economy in Washington, U.S., Nov. 15, 2008. (Xinhua/Li Xueren) Photo Gallery>>>

    WASHINGTON, Nov. 15 (Xinhua) -- Leaders from the world's major developed and emerging economies agreed here on Saturday to undertake a coordinated action to tackle the ongoing global financial crisis and explore measures to prevent similar crisis in the future.

    DETERMINATION AND REFORMS

    "We are determined to enhance our cooperation and work together to restore global growth and achieve needed reforms in the world's financial system," said the leaders in a declaration issued at theG20 summit on financial markets and world economy, which is held Saturday in Washington.

    "Our work will be guided by a shared belief that market principles, open trade and investment regimes, and effectively regulated financial markets foster the dynamism, innovation, and entrepreneurship that are essential for economic growth, employment, and poverty reduction," the declaration said.

    The Washington summit, held amid serious challenges to the world economy and financial markets, was the first time for the Group of 20 since it was founded in 1999.

    The group consists of the world's major developed and emerging economies which accounting for 85 percent to 90 percent of the world's total economy and about two-thirds of the world's population.

    As widely expected before the summit, the leaders vowed to implement reforms in order to strengthen financial markets and regulatory regimes so as to avoid future crisis.

    Intensified international cooperation among regulator and strengthening of international standards and their consistent implementation is necessary to protect against adverse cross-border, regional and global developments affecting international financial stability, according to the leaders.

    "Regulators must ensure that their actions support market discipline, avoid potentially adverse impacts on other countries, including regulatory arbitrage, and support competition, dynamism and innovation in the marketplace.

    "Financial institutions must also bear their responsibility for the turmoil and should do their part to overcome it including by recognizing losses, improving disclosure and strengthening their governance and risk management practices," said the declaration.