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Davos leaders call for exit strategies, but urge caution

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Lee Myung-bak, President of the Republic of Korea speaks during an address at the WEFin Davos, Switzerland on Jan. 28, 2010. [CFP]

Lee Myung-bak, President of the Republic of Korea speaks during an address at the WEFin Davos, Switzerland on Jan. 28, 2010. [CFP]


World leaders on Thursday called for caution in designing economic exit strategies as the global economic recovery is still "tentative."

In a special address at the ongoing World Economic Forum annual meeting, South Korean President Lee Myung-bak said the global economy has just gone through a period of crisis and is now showing tentative signs of recovery.

Lee, whose country will host the next Group of 20 (G20) summit in November, called on G20 members to consider implementing an "exit strategy" for the unprecedented fiscal and monetary stimulus programs adopted by many countries to deal with the crisis, but urged them to "tread gently."

"One of the tasks of the G20 will be to coordinate the transition to a more normal policy stance once the appropriate conditions are in place," he said.

Lee added that it was time for the G20 to set the post-crisis agenda, and to build the platform that would ensure sustained and balanced growth for the world economy in the months and years ahead.

"The G20 this year will continue its efforts to overcome the consequences of the global financial crisis and to re-double its efforts in coordinating policies toward recovery," he told top business executives and government officials attending the annual gathering in the Swiss ski resort.

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