It's been a busy day for President Obama in London. Anchor Lisa Mullins reviews the day's events with the BBC's diplomatic correspondent, Jonathan Marcus, and discusses whether the economic crisis is changing the world's balance of power.
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LISA MULLINS: Now, aside from the protests, civilized and not so civilized, there's also substantive business taking place among the G-20 leaders.The BBC's Diplomatic Correspondent, Jonathan Marcus, says President Obama, for one, has had a few hectic hours.
JONATHAN MARCUS: It's been a hugely busy day for him. He and his wife began with breakfast at Number 10 Downing Street with the British Prime Minister. They had discussions and then walked over to the foreign office in a very grand ornate room to give a press conference. Quite a contrast in styles. The British Prime Minister, Gordon Brown, is not entirely at ease, perhaps, at these occasions. The President was much more at east, much more comfortable. He gave, I think, the British Prime Minister quite a boost. Mr. Obama mentioned those magic code words, the special relationship between Britain and the United States, which obviously warms the cockles of the hearts of politicians here very much. Mr. Brown, of course, is hoping for something of a boost in his domestic political fortunes from this leading role in the G-20. And I think, certainly, for Mr. Brown it got off to a good start care of Mr. Obama.
LISA MULLINS: How about China's president?
JONATHAN MARCUS: Well, he, also, has been meeting the American President and that has been one of the key meetings of this whole two day diplomatic razzmatazz. In a way some people are talking about this as the G-2 in contrast to the G-20. I think it's absolutely clear that this relationship between China and the United States is going to be central in getting the world out of this economic crisis. President Obama was rather self effacing at his press briefing with Mr. Brown where he said that the world couldn't rely upon America alone being the engine of economic growth, but it's clear now that this central relationship between China and the United States is critical. They're forming a new strategic and economic dialogue, a forum where the Americans will be represented at the highest level by Secretary of State, Hillary Clinton, and Treasury Secretary, Timothy Geither. Similarly high levels will take part as well. So, there's a kind of a codifying, a formalizing of this relationship between Washington and Beijing. And in the statement that the two presidents issued they made it very, very clear that their relationship was going to be central, not just to the immediate health of the world economy, but to the health of the economy in the years to come.
LISA MULLINS: I just want to follow up on one point when you talked about Barack Obama being rather self effacing saying that the United States is not a miracle worker here and that it needs these other countries to come on board. This ties in with something, Jonathan, that you have written about, and that is how this economic crisis is transforming the global pecking order, the balance of power, and I'm wondering if you can explain what you mean and how you're validating that through what you're seeing at the summit.
JONATHAN MARCUS: I think the essential point is this: the crisis drives changes in foreign policy. And many people are arguing that this, it's a point, I think, the British Foreign Secretary David Miliband made in a speech a few weeks ago that, you know, this crisis, economic crisis, could have an even more dramatic impact on the world than the responses to the 9-11 attacks in Washington and New York. And the reason I say that is because if you look around the world at what is happening as a result of this economic crisis America's ability to influence events is, perhaps, weakening, changing. There will be pressure on the defense budget, pressure on foreign aid budgets. America's standing in the world, because of the collapse of the banks, and so on, has been affected. You look at what's happening in developing societies, and some failed and failing states; Pakistan, Afghanistan, their predicament is made worse by the economic crisis. Even in some very developed countries; in Europe you're seeing huge political problems. Governments have already collapsed in Iceland. Governments have collapsed in Hungry. Look at the political problems in Ukraine and so on.
LISA MULLINS: But, Jonathan, doesn't that counter the point that everybody is in trouble and all boats are taking on water, not just the United States?
JONATHAN MARCUS: All boats are certainly taking on water, but out of that global crisis I think significant changes emerge. And I think it is quite clear that some countries, I think possibly Britain is among them, will emerge from this crisis in a rather different position in the world economic pecking order than it had been before.
LISA MULLINS: Sorry, meaning higher or lower?
JONATHAN MARCUS: Meaning lower in the case of Britain. I think the problems of many of these countries, Pakistan, Afghanistan, are going to be dramatically worsened by the crisis. We've talked a lot about a resurgent Russia. About new powers emerging, regional powers, like Iran. Well, what's their position going to be? Venezuela, what's their position going to be after they find their economies badly damaged by the collapsing price of the energy exports that they so heavily depend on? So, you know, a very wide spread impact from a crisis. And I think over time, this isn't going to happen over night, but over time we may look back on this period and say that some very, very significant changes have taken place.
LISA MULLINS: Jonathan Marcus the BBC's diplomatic correspondent in London. Thank you, Jonathan.
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