Rudd talks of human cost of recession

Australian Prime Minister Kevin Rudd has urged world leaders to never forget the human face of the global financial crisis, as he addressed the United Nations in New York.

He invoked the suffering of workers in Liverpool in NSW, Cairns in Queensland and the south-eastern suburbs of Perth in Western Australia, when imploring fellow leaders to find a path out of the global recession.

"In communities like these across Australia the global recession is hurting in very real ways," he said.

"We can never forget these men, these women, their families as we seek to find a path out of this recession."

In a broad ranging speech, Mr Rudd discussed the financial crisis, the Doha round of world trade talks, climate change and nuclear disarmament.

Mr Rudd used the international spotlight to focus on the need for ongoing reform of institutions of "global governance".

"The price of failure of these institutions has been paid by working people and their families right across the world," he said.

Mr Rudd said the financial crisis had been "no respecter" of national boundaries.

"(It has been) no respecter of peoples," he said.

Tens of thousands of Australian jobs had already lost jobs, he told the audience, and more would follow.

"Behind each of these statistics lie the faces of working Australians," he said.

Foreign Minister Stephen Smith and Climate Change Minister Penny Wong were in the audience, but many seats in the auditorium remained empty.

Mr Rudd said Group of 20 (G-20) leaders from developed and developing economies had injected $5.5 trillion worth of fiscal stimulus to directly stabilise the global financial system.

"While our global economic system failed comprehensively to prevent this crisis, the G-20 governments have rallied to reduce the damage and prevent systemic collapse," he said.

The G-20 had also worked together to take toxic assets off bank balance sheets, giving markets confidence a subsequent crisis could be dealt with, Mr Rudd said.

The forum also established the Financial Stability Board, a "comprehensive financial markets reform program".

Mr Rudd said the global financial crisis was not yet over.

"Recovery is far from certain and many twists and turns lie ahead," he said.

In the meantime, Mr Rudd called for the establishment of a financial market reform program to prevent any future crisis and international agreement on when and how to withdraw emergency economic measures.

"Most critically, we must articulate a new framework for sustainable future economic growth," he said.

"A framework that doesn't simply return to business as usual based on unsustainable financial imbalances, excessive consumption fuelled by consumer and corporate debt and irresponsible risk-taking in systemically significant financial institutions."

On climate change, Mr Rudd said the global debate had "degenerated into mutual recriminations" between developed and developing countries.

But both must step up to the challenge if global temperatures were to be restrained.

"The truth is all our governments need to reach beyond their self interests and instead fashion a grand bargain between the developed and developing countries of the world," he said.

"A grand bargain on climate change that embraces both historical and future responsibility.

"A grand bargain which is anchored in the science of climate change and need to keep temperature rises within two degrees Celsius to avoid catastrophic climate change."

The bargain had three key elements, Mr Rudd said.

It must set clear and binding targets, outline the public and private financing required and how to approach a shift to renewable energies.

- AAP