Recommendations for Immediate Action -UN Commission of Experts

[Rajiv]

The First Meeting of the Commission of Experts of the President of the United Nations General Assembly on Reforms of the International Monetary and Financial System Recommendations for Immediate Action

Commission Members

* Mr. Joseph Stiglitz (USA) (Chair) University Professor, Columbia University, Nobel Prize in Economic Sciences (2001). Former Senior Vice President and Chief Economist of the World Bank.
* Mr. Andrei Bougrov (Russia) Managing Director and member of the Board of Directors of the Interros Company. Former Principal Resident Representative of Russia, Executive Director and member of the Board of Directors of the International Bank for Reconstruction and Development.
* Mr. Yousef Boutros-Ghali (Egypt) Minister of Finance. Chair of the International Monetary and Financial Committee of the Board of Governors of the International Monetary Fund.
* Mr. Jean-Paul Fitoussi (France) Professor of Economics at the Institut d’Etudes Politiques de Paris since 1982. Currently President of the Scientific Council of the Institut d’Etudes Politiques de Paris and President of the Observatoire Français des Conjunctures Economiques.
* Mr. Charles A. E. Goodhart (UK) Norman Sosnow Professor of Banking and Finance Emeritus, London School of Economics. Former Chief Advisor to the Bank of England and member of its Monetary Policy Committee.
* Mr. Robert Johnson (USA) Former Chief Economist of the US Senate Banking Committee and former Senior Economist of the U.S. Senate Budget Committee. Former managing director at Soros Fund Management. Member of the Board of Directors of the Economic Policy Institute and the Institute for America's Future.
* Mr. Jomo Kwame Sundaram (United Nations) Assistant Secretary-General for Economic Development, United Nations Department of Economics and Social Affairs.
* Mr. Benno Ndulo (Tanzania) Governor of the Bank of Tanzania.
* Mr. José Antonio Ocampo (Colombia) Former UN Under-Secretary-General for Economic and Social Affairs and Finance Minister, Colombia. Currently Professor, School of International and Public Affairs, Columbia University.
* Mr. Pedro Páez (Ecuador) Former Minister for Economic Coordination, Ecuador.
* Mr. Avinash Persaud (Barbados) Chairman of Intelligence Capital Limited. Member of council, London School of Economics. Founding director of the Global Association of Risk Professionals.
* Mr. Yaga Venugopal Reddy (India) Former Governor of the Reserve Bank of India.
* Mr. Rubens Ricupero (Brazil) Former Secretary-General of UNCTAD. Former Minister of Finance of Brazil.
* Mr. Eisuke Sakakibara (Japan) Former Vice Minister of Finance for International Affairs. Currently Professor at Waseda University, Tokyo.
* Mr. Chukwuma Soludo (Nigeria) Governor, Central Bank of Nigeria.
* Ms. Heidemarie Wieczorek-Zeul (Germany) Federal Minister of Cooperation and Development.
* Mr. Yu Yongding (China) Director, Institute of World Economics and Politics, Chinese Academy of Social Sciences. Former Member of Monetary Policy Committee, People’s Bank of China.
* Ms. Zeti Akhtar Aziz (Malaysia) Governor and Chairman, Central Bank of Malaysia.

Introductory Remarks by Chairman

This unprecedented global financial and economic crisis requires an unprecedented global response. It requires a response not just from the G-7, G-8, G-10, or G-20, but from the entire international community, the G-192. This gives especial importance to this initiative of the President of the General Assembly, which has received so much support from around the world. I am particularly pleased at the quality and diversity of the group of experts that he has been able to assemble. This will help ensure that the interests, concerns, and perspectives not only of the richest countries and the rapidly growing emerging markets and those in the financial markets are heard, but also those of the poorest countries and those from all sectors of the economy. In our work, we hope to draw upon the expertise of the best scholars and practitioners from all over the world.

The current financial crisis, which began in the U.S., then spread to Europe, has now become global. Even emerging markets and less developed countries that managed their economy well, resisted the bad lending practices, held high levels of foreign exchange reserves, did not purchase toxic mortgages, and did not allow their banks to engage in excessive risk taking through derivatives are likely to become embroiled and to suffer as a result. Any global solution—short term measures to stabilize the current situation and long term measures to make another recurrence less likely—must pay due attention to impacts on these countries. Without doing so, global economic stability cannot be restored and economic growth, as well as poverty reduction worldwide will be threatened.
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1. It is imperative that all the developed countries take strong and effective actions to stimulate their economies........

2. There are large asymmetries in global economic policies—countercyclical policies are pursued by developed countries, while most developing countries pursue pro-cyclical policies........

3. It is imperative that developing countries be provided with funds to enable them to undertake comparable policies, to stimulate their economies, to provide social protection, and to ensure a flow of liquidity to their firms, including maintenance of trade credits.........

4. In some parts of the world, there are ample sources of liquid funds, and more of these need to be made available to the needy developing countries. However, countries with these funds are not now adequately represented in the multilateral institutions........

5. While funds within the International Financial Institutions are limited, it is imperative that more funds be provided, and that they be provided without the usual conditionalities, especially those that force these countries to pursue pro-cyclical policies or to adopt the kinds of monetary and regulatory policies which contributed to the current crisis........

6. Additional funding could be provided by a large issuance of Special Drawing Rights.........

7. The Commission noted several regional efforts at cooperative responses to the crisis, including providing needed liquidity, and urged the consideration of their expansion..........

8. The crisis is widely viewed to be the result of the failure of regulatory policies in the United States and some other advanced industrial countries......

9. The crisis highlights how policies and institutions in developed countries can have global systemically significant effects.........

10. Members of the Commission noted that while lack of transparency is widely recognized as having contributed to the problems in the financial market, there have been significant lapses in transparency in the manner in which the bail-outs have been conducted.........

11. While a successful completion of the Doha trade round would be welcome, certain actions could be implemented immediately, namely the opening of markets in advanced economies to least developed countries’ exports.
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[tsetsefly]

Re: Recommendations for Immediate Action -UN Commission of Experts

The First Meeting of the Commission of Experts of the President of the United Nations General Assembly on Reforms of the International Monetary and Financial System Recommendations for Immediate Action

Commission Members



Introductory Remarks by Chairman
This unprecedented global financial and economic crisis requires an unprecedented global response. It requires a response not just from the G-7, G-8, G-10, or G-20, but from the entire international community, the G-192.

Okay so everyone must inflate!

I am particularly pleased at the quality and diversity of the group of experts that he has been able to assemble.

non of which saw the financial meltdown coming and are indoctrinated with keynsian principles, which they will treasure to death despite evidence continually hitting them in the face...

1. It is imperative that all the developed countries take strong and effective actions to stimulate their economies........

off course! all must ramp up the printing presses

The crisis is widely viewed to be the result of the failure of regulatory policies in the United States and some other advanced industrial countries......

Yup, everyone was forced to join in on the fun and either create their own asset bubble or buy into coompanies that where doing that.
Need not mention the pivital role government had to play in pouring gasoline on the fire. TO say lack of regulation cause this is, at best a gross misunderstanding...

I would say whatever they say there do exactly the opposite and you should be fine. Lets not forget what great advice organizations such as the IMF have given countries, ask Argentina how it went for them when they followed advice froma world organization.

[don]

Re: Recommendations for Immediate Action -UN Commission of Experts

Lets not forget what great advice organizations such as the IMF have given countries, ask Argentina how it went for them when they followed advice froma world organization.

Better yet the IMF incubator baby, Pinochet's Chile

(Ever see the film clip of Nelson Rockefeller telling Henry Kissinger what a good job he did in Chile? Henry is practically buffing Rocky's shoes with his lips. As far as an illustration of power, it's a work of art. Should be on YouTube ;))

[due_indigence]

Re: Recommendations for Immediate Action -UN Commission of Experts

Bingo tsetsefly. Keynes unto death. Unless Jesus comes first. We are being presided over by a bankrupting bankrupt worldview.

The required sea-level change is beyond the comprehension of the elite --largely because debt --the flipside of money creation-- is the currency of power. They will not part from it willingly. Currency debasement seems a small price to pay. Though the timing is tricky, inflation is assured.

Even at a time when the world is screaming for sea-level change, the elites are institutionally arrayed towards the status quo. It's like asking the Wooly Mammoth to sign his own extinction paperwork. Not while he's got tusks bub. In an odd way, the elites are completely powerless against reality. The question is how does the little guy play this once in a millenium trend? Gold seems the likeliest choice. That's not to say the little guys won't perish amidst the deat throes of the Titans. Short of death, I say gold.

[FRED]

Re: Recommendations for Immediate Action -UN Commission of Experts

The First Meeting of the Commission of Experts of the President of the United Nations General Assembly on Reforms of the International Monetary and Financial System Recommendations for Immediate Action

Commission Members



Introductory Remarks by Chairman

Regarding:

3. It is imperative that developing countries be provided with funds to enable them to undertake comparable policies, to stimulate their economies, to provide social protection, and to ensure a flow of liquidity to their firms, including maintenance of trade credits.........

Minor detail: the developing countries were the ones providing the credit to the US before the crisis began. How is the US to suddenly become a creditor that can lend to developing nations, or is Stiglitz volunteering China's and Japan's money?

China is about China. It will lend money to other countries not to solve a financial crisis that the US started but in return for things of value, in the past demand for their goods from the US, in the future raw materials from Africa, oil from Russia, and so on, on the cheap.

We'll see what Yu Yongding (China) and Eisuke Sakakibara (Japan) have to say about this proposal.

[Mega]

Re: Recommendations for Immediate Action -UN Commission of Experts

"Yu Yongding is that a dagger i see i thy hand?"

I wish China would just grow a pair & do what 99% of the Planet wants.....Knife America!

Loved "O-B-ONE" today, "We want to be friends with you Islamic types"......By sending Bombs to Is-real & 65,000 troops to Afgan!

Mike

[Slimprofits]

Re: Recommendations for Immediate Action -UN Commission of Experts

We'll see what Yu Yongding (China) and Eisuke Sakakibara (Japan) have to say about this proposal.

Mr. Yen (Sakakibara) said he expected the yen to appreciate further once what he termed “Obama euphoria” had disappeared.

“If the yen/dollar rate starts to break Y85, they will probably start to consider intervention,” he said, adding that the finance ministry was coming under strong pressure to rescue struggling exporters.

[..]

Sakakibara said: “It was very difficult to [intervene] in December. The American financial system was in turmoil and the American government was in transition.” He added: “Now Obama is sworn in and the Treasury secretary has been decided, they can discuss with Tim Geithner [the Treasury secretary-designate] how to intervene and how to get American agreement for intervention.”

source: Fin. Times via Peninsula On-line

[Kcim67]

Re: Recommendations for Immediate Action -UN Commission of Experts

Bingo tsetsefly. Keynes unto death. Unless Jesus comes first. We are being presided over by a bankrupting bankrupt worldview.

The required sea-level change is beyond the comprehension of the elite --largely because debt --the flipside of money creation-- is the currency of power. They will not part from it willingly. Currency debasement seems a small price to pay. Though the timing is tricky, inflation is assured.

Even at a time when the world is screaming for sea-level change, the elites are institutionally arrayed towards the status quo. It's like asking the Wooly Mammoth to sign his own extinction paperwork. Not while he's got tusks bub. In an odd way, the elites are completely powerless against reality. The question is how does the little guy play this once in a millenium trend? Gold seems the likeliest choice. That's not to say the little guys won't perish amidst the deat throes of the Titans. Short of death, I say gold.

Does anti keynsianism equate to pro capitalism I hope not seems to me that one looks to have shot its bolt too! Alternatives boys???? Debt Jubilee or World War III ! I'm not seeing many alternatives here. Does it really matter if we have to re-mortgage a bit and maybe leave a little negative inheritance for a while. All i really care about is what are we going to do with the shysters how are we going to create a more even playing field and can we for once in our history realise that there is only one planet and we are all in this together!!!!!! :-( kcim67

[Rajiv]

Re: Recommendations for Immediate Action -UN Commission of Experts

Fred,

I just think that these are just the opening shots in the battle for who gets a say in the possibly upcoming Bretton Woods II.

In fact Stiglitz has made it abundantly clear in his talks and stances that this is something that affects the entire world, and that they are also party to the search for solutions.

Also relevant are various tidbits appearing over the last few months

Global Financial Crisis meeting J. Stiglitz leads conference on the eve of the G20 meeting - 17 November 2008

The previous chief economist at the World Bank, J. Stiglitz, who has now been appointed chair of the UN high-level task force on financial reform, led a conference on the eve of the November 15th G20 meeting . The conclusions from the conference were submitted to the G20 summit the following day. The conference statement can be found here.

Discussions on the future of the financial system included key principles for regulatory reform. These emphasised a comprehensive approach to include all financial instruments and jurisdictions, therefore setting the agenda for the need to discuss offshore centres, banks' off-balance sheet activity and hedge funds. They also proposed the need for a global regulator to address the issues arising from global capital flows.

Visions of reform included developing country inclusivity in the design of a network of both regional and national authorities to regulate the global financial system.

A detailed plan to achieve these ambitious aims has not however been formulated.

also Revolt Against "Elite Clubs" Grows at UN 31st October 08

U.N. member states and economists challenged the neo-liberal policies of market deregulation that have long been promoted by powerful global financial institutions like the World Bank and International Monetary Fund (IMF), and called Thursday for a new, more inclusive global financial architecture.

Nobel Prize-winning U.S. economist Joseph Stiglitz stressed that "the current economic crisis should provide an opportunity to reassess global economic arrangements and prevalent economic doctrines", as he spoke at a panel on the ongoing global financial crisis, held by the U.N. General Assembly on Thursday.

Stiglitz is supposed to head a new U.N. task force of experts to undertake a review of the international financial system -- including its major institutions -- and to make proposals for how a more stable global economic order could be achieved. Other members of the task force are to be announced in the near future.

In his statement, Stiglitz heavily criticised the current international system for working "to the disadvantage of developing countries" as capital and financial market liberalisation -- which has been pushed on developing countries by the IMF and the World Bank in exchange for financial support -- "has often not brought the promised benefits of enhanced growth, but has increased instability."

Blaming the IMF, with its under-representation of developing countries, for being a source of current problems rather than part of the solution, Stiglitz proposed the creation of a new international financial facility funded by countries with large reserves -- for instance, China, Japan, India and oil-exporting states.

Stiglitz told IPS that "the IMF makes it very difficult for those whose voices are not adequately heard to turn over the money", in a situation where an international forum is needed to mobilise liquidity for developing countries.

Bretton Woods Update No.63 is a good overview -- In there there some of the different solutions to the blueprints that are being discussed and are highlighted.

New international economic architecture - No shortage of blueprints

In the quote below, I am showing the sub topic headings

The financial and economic crises have brought out a plethora of ideas for reforming the international financial architecture. Below, we highlight a few of the many different blueprints.

Even those responsible for creating and safeguarding the economic system have said the whole system should be reconsidered. Simon Johnson, former chief economist of the IMF claimed that "everything's on the table" and the European Central Bank President Jean-Claude Trichet said "there must be no taboos". Which ideas gain the most credence over the coming months will matter enormously.

Jose Antonio Ocampo, former UN undersecretary general for economic and social affairs, wrote: "The current financial crisis has made the need for reform of the international financial architecture patently clear. But any summons to a 'Bretton Woods II' conference must be concrete in its content. A global system for prudential regulation and supervision; a revamped IMF managing a global reserve currency, coordinating global macroeconomic policy, and providing agile credit lines; and an international debt court - all of these must be on the agenda."

Global Monetary Authority?

What to do about banks?

IMF to the rescue?

What to do about currencies?

Regionalism to the rescue?

People-centred alternatives