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03 March 2009
Financial Crisis Tops Agenda in British Prime Minister's Visit

By David McKeeby
Staff Writer

Related:
 • Remarks by President Obama and Prime Minister Gordon Brown
 • View C-SPAN's video of remarks

Washington — America's "special relationship" with Britain is more vital than ever as both nations stand together to face a host of emerging challenges, from a global financial crisis to international efforts to stabilize Afghanistan, says President Obama.

"Britain is one of our closest, strongest allies," Obama said in a March 3 press appearance with British Prime Minister Gordon Brown at the White House. "There is a link, a bond that will not break. And I think that's true not only on the economic front but also on issues of common security."

As the world faces an increasingly serious economic crisis, Brown — a former finance minister — comes to Washington seeking to focus what he called a "partnership of purpose" between London and Washington for restoring global financial markets. Brown will also discuss the financial crisis in an address to a joint session of the U.S. Congress March 4.

Support for struggling banks and economic stimulus must be followed by improved international standards of accountability for banks, hedge funds and other international financial entities, part of what Brown has called "a global New Deal."

"We still have the 1930s regulatory system in place in most countries, designed from the last great crisis," Obama said. "We've got to update our institutions, our regulatory frameworks so that the power of globalization is channeled for the benefit of ordinary men and women."

The two leaders also agreed that countries must resist the temptation of trade protectionism.

"Globalization can be an enormous force for good," Obama said. "We should encourage trade. The fact that we have a global capital system allows money to flow to areas that previously couldn't get capital. That allows them to develop and to grow. That can grow the economy worldwide, increase trade, and that potentially benefits everybody."

Obama and Brown will continue their discussion in London April 2, when they join other leaders from the Group of 20 developed and emerging economies.

ALLIES DISCUSS AFGHANISTAN STRATEGY

The two leaders also discussed the need to formulate a reinvigorated international strategy to help the people of Afghanistan take their country back from extremists and emerge from decades of poverty and war.

"Britain and the United States share a deep interest in ensuring that neither Afghanistan nor Pakistan are safe havens for terrorist activity," Obama said. "Our strongest partner in that effort once again will be the United Kingdom."

Britain has the second largest contingent of troops in Afghanistan as part of the 41-nation, 55,000-strong International Security Assistance Force led by NATO. Most of the United Kingdom’s 8,000 troops serve alongside U.S. forces in the country’s southeast, where Taliban and al-Qaida militants launch daily attacks on Afghan communities from strongholds in the Afghanistan-Pakistan border region.

Obama has identified Afghanistan as a top foreign policy priority, naming veteran peacemaker Richard Holbrooke as his special representative for Afghanistan and Pakistan, deploying 17,000 additional U.S. forces to the region, and initiating wide-ranging consultations with trans-Atlantic and South Asian partners on formulating a new regional security strategy. (See "Afghan, Pakistani Officials Join White House Strategy Talks.")

The two leaders agreed on the need to strengthen diplomacy and development efforts on both sides of the border. They also want to match security operations with a renewed focus on helping Afghans build effective governing institutions that can deliver essential services to the citizens.

The Obama administration plans to unveil its new Afghan security strategy ahead of the 60th Anniversary NATO Summit hosted jointly by France and Germany April 3-4, where Obama and Brown will meet again following the G20 meeting.

"We have a shared worldview that it is important for us to be true to our values and ideals of rule of law, of a belief in human rights, a belief in our democratic practices, but that we also have to be respectful around the world and to listen and not simply dictate; that in this new world that we live in, that the way to get things done is to build partnerships and alliances as opposed to acting unilaterally," Obama said.

A transcript of remarks by Obama and Brown is available on America.gov.

What actions do you think President Obama should take to address the global economic crisis? Comment on America.gov’s blog.

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