New set up for global economic management vital
Coordination among policy makers for fiscal stimulus and keeping
trade finance alive is the need of the hour, said. Country Director
World Bank Sri Lanka Naoko Ishii.
She was addressing the CMA seminar on Global Financial Crises and
Impact on Economy and Business.
She said that to carry out this kind of coordination among global
policy makers, the current system represented by G7 may not be best
suited and a new set up for global economic management is urgently
Firstly developing country voices need to be better heard and
secondly new stakeholders the private sector, academics and NGOs need to
be included. May be we are entering an era of “New multilateralism”, she
Not only people in government should take the lead in identifying
issues and connecting people and ideas, and soliciting money to work on.
She said that people may find how useful the “market” can be, as they
are able to set up markets which have new ideas and values and they can
trade those values worldwide as technology is on their side.
She focused on two broad issues specific to Sri Lanka the first was
to look at “What this crisis means for the global economic system and
secondly, “How global leaders should respond to the crisis and whether
it is necessary to have a new mechanism for coordination among global
Ishii said that there is a widespread notion that this crisis is
driven by greedy investment banks of Wall Street who have deprived the
ordinary people of their assets.
The policy responses across the globe include provision of blanket
guarantee for deposits and nationalisation of failing banks, which
strengthen the hands of the state as markets are central instruments of
capitalism. Some interpret this as the “end of capitalism”, she said.