There is arguably no immediate remedy for fixing the sagging world economy. Yet the forthcoming London G20 summit has drawn worldwide attention, as it aims to make a mark in putting the global economy on the road to recovery.

So will the London event live up to expectations?

Since late last year, the US financial crisis has spilled over into all economic sectors, and is taking its toll on a global scale. The world economy has suffered an unprecedented setback, and is expected by the International Monetary Fund (IMF) to shrink for the first time in 60 years in 2009 by up to 2 percent.

The collapse of businesses, the loss of jobs and falling confidence all paint a bleak picture of what is believed to be the worst recession since the 1930s Great Depression.

Up to US$2 trillion involved in the global fiscal stimulus measures have yet to yield any encouraging results.

The consequent growing government deficits have become a topic of concern among the British and US public. Many people are worried that their governments have created massive debts for future generations of taxpayers.

The G20 countries have been urged by the IMF to invest the equivalent of 2 percent of their GDP into stimulus efforts during 2009 and 2010. But the proposals have failed to draw unanimous support from many of the G20 members.

Why London summit matters

The London summit is the second major gathering of G20 states, bringing together leaders of the countries for discussion on the economic crisis. Last November's Washington summit laid the groundwork for the London meeting.

The G20 countries, which represent 85 percent of the world's GDP, will make decisions, which will matter to each country as to how they will engage in a globally coordinated action to end the meltdown.

The knock-on effects of the economic crisis have highlighted the increased interconnectivity of countries in a globalized world. This also underlines the need to overhaul the international financial systems with the developing world having a bigger say in international financial institutions.

However, this would not be easily achieved, as developed countries, especially the US, are unwilling to give up their dominance of global financial institutions and markets.

China's recent proposal for creating a global currency to replace the dollar has been dismissed as "unnecessary," with many leaders, including Barack Obama, Gordon Brown and Kevin Rudd, arguing that the US dollar remains strong. However, the IMF has forecast that the US will see a 2.6 percent drop in GDP in 2009.