The Group of 20 summit must make progress on a strategy for economic recovery and should aim to double, and if necessary triple, the resources of the IMF, Australian prime minister Kevin Rudd said today.
Mr Rudd told a business lunch the risks to the global economy were still on the downside.
"The first major risk comes from a potential economic collapse of emerging markets," he said. "The second major risk to global recovery is the process of deleveraging."
Mr Rudd, said the gathering this week would be judged on its effectiveness in restoring confidence to the world's shattered economy.
"The London G20 must make progress towards a global strategy for economic recovery," he said.
"The summit will be judged on one overarching outcome - whether leaders can agree on a...plan that helps to restore confidence to a global economy sorely lacking in confidence."
Global stock markets took a dip on Monday but rose sharply last week on a return of global optimism, with some analysts saying the G20's main achievement could be to instil renewed confidence into markets.
Mr Rudd said the summit must reach agreement on issues including macroeconomic action to restore growth, toxic assets, reform of financial institutions and regulation.
"We should aim to double and if necessary triple pre-crisis levels of IMF resources," Mr Rudd said.
The US is seeking another $500 billion for the International Monetary Fund, but the European Union is looking to a smaller increase in IMF resources.
Mr Rudd added the G20 must prevent the creep of protectionist policies.
"We must hold the line against further acts of protectionism, be it in physical goods or...financial protectionism."
Mr Rudd, who flew to London from the United States where he met president Barack Obama, welcomed the new US administration.
"What is of good news to the global economy is this: America has returned to the stage when it comes to global economic leadership."
Reuters