ID :
24122
Mon, 10/13/2008 - 13:02
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https://oananews.org//node/24122
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UAE requests IPU to debate global financial crisis
Geneva, Oct.13, 2008 (WAM) - The UAE request for inclusion of an emergency item in the agenda of the 119th Assembly of the Inter-Parliamentary Union about the global financial crisis has won unanimous support of Arab delegates, a senior UAE MP said yesterday.
Ali Jasim Ahmed, Second Deputy Speaker of the UAE Federal National Council and head of the UAE delegation to the IPU meeting, expected the UAE proposal to gain more support given the fact that Belgium and a group of Latin American countries had also submitted similar moves.
The UAE parliamentary team took part also in the 183th session of the IPU governing council and the consultative meeting of the Arab delegations to the IPU assembly.
The meeting discussed along other items on the agenda a request by the Inter-Parliamentary Group of the United Arab Emirates for the inclusion in the agenda of the 119th Assembly of an emergency item entitled: "The role of parliaments in containing the global financial crisis and its impact on national economies".
"The 119th Assembly will be required to take a decision on the request of the delegation of the United Arab Emirates on Monday, 13 October 2008, he said.
"It is predicted that the current global financial crisis will result in the collapse of stable societies and the undoing of the positive results of economic policies adopted in the developing countries. According to some estimates, the economic crisis could increase poverty in the world by more than 50 per cent and the number of the poor people by more than 100 million. It is predicted that growth rates around the world will slow down by more than 70 per cent and economic indicators will fall to less than 3 per cent this year alone," according to an explanatory memorandum submitted by the UAE.
"The bankruptcy of international financial institutions could jeopardize the savings and investments of people throughout the world and affect the economic and social development plans of all countries. Such a situation requires a critical review of free market policies.
"Hotbeds of tension and international conflict have emerged as the financial crisis has not just economic ramifications, but political ones as well. In this context, it is important to find new ways of supporting economies outside the recognized international borders.
"Increasing the duration and risk of an international economic recession, it warned, would have devastating consequences. The multilateral financial institutions will be forced to withdraw many of their investments in developing countries, which, in turn, will lower demand for commodities exported by the developing countries," the memo indicated.
"Unemployment rates are expected to rise in the developed countries by more than 40 per cent and by 60 per cent in the developing countries, which could lead to exacerbated social problems in many of them. The number of unemployment claims recorded since the crisis began already exceeds 445,000.
"The collapse of global financial markets and of several major companies could further affect the world's stock markets, which have already suffered historic losses, in addition to the loss of consumer confidence.
"The disruption of international currency exchange markets has resulted from the imbalance in the neutral values of the national currencies vis-à-vis hard currencies, especially the US dollar. This could steer the global economy into disaster as a result of rising commodity prices and price imbalances between exports and imports.
"Loss of confidence in the national and international financial institutions will be inevitable, leading to a decline in national and international investment as a result of increased borrowing.
"The negative economic effects of the crisis could deepen, which would seriously affect the developing countries if the international financial crisis persists. This will place increasing economic and social pressures on the developing countries' balance of payments and increase the price of their imports.
"If the international community does not find solutions to the crisis, the total cost of the international financial crisis will increase. At present, it is estimated to cost about US$ 1.3 trillion,” it warned.
Considering the importance of parliament's role in cooperation with national governments to contain the effects of the global financial crisis that threaten the world's stability, security and development, and recognizing the collective responsibility of the international community in dealing with the international economic crisis in order to meet human development needs, eradicate poverty and achieve the Millennium Development Goals (MDGs), the UAE calls for the holding of an international parliamentary conference with international finance experts to examine the effects of the international financial crisis on the global economic system and identify ways of dealing with the consequences of this crisis and urges parliamentary committees dealing with financial, economic and trade-related issues to urgently convene meetings to identify the best ways of protecting the financial institutions and mitigating the effects of the international financial crisis until such time as a global strategy to deal with the crisis is found.
It also calls on governments to include parliamentarians in their official delegations to conferences, forums and meetings organized to discuss the international financial crisis so that parliamentarians can express their opinions and ideas as the representatives of the people; encourages implementation of internationally agreed laws and standards on the transparency of financial markets and to ensure the accuracy of financial transactions, which would enhance the national and international capacity to assess financial risks and calls for the establishment of investment and national emergency funds to reduce the potential social consequences of the international financial crisis as they relate to employment prospects, job security, rising prices and poverty, all of which are covered by the United Nations Millennium Declaration.
It calls on the central banks and currency control agencies to implement precautionary policies, procedures and measures in order to ensure the immunity of the financial and banking sectors in the coming months until the repercussions of the current international financial crisis can no longer be felt.
Ali Jasim Ahmed, Second Deputy Speaker of the UAE Federal National Council and head of the UAE delegation to the IPU meeting, expected the UAE proposal to gain more support given the fact that Belgium and a group of Latin American countries had also submitted similar moves.
The UAE parliamentary team took part also in the 183th session of the IPU governing council and the consultative meeting of the Arab delegations to the IPU assembly.
The meeting discussed along other items on the agenda a request by the Inter-Parliamentary Group of the United Arab Emirates for the inclusion in the agenda of the 119th Assembly of an emergency item entitled: "The role of parliaments in containing the global financial crisis and its impact on national economies".
"The 119th Assembly will be required to take a decision on the request of the delegation of the United Arab Emirates on Monday, 13 October 2008, he said.
"It is predicted that the current global financial crisis will result in the collapse of stable societies and the undoing of the positive results of economic policies adopted in the developing countries. According to some estimates, the economic crisis could increase poverty in the world by more than 50 per cent and the number of the poor people by more than 100 million. It is predicted that growth rates around the world will slow down by more than 70 per cent and economic indicators will fall to less than 3 per cent this year alone," according to an explanatory memorandum submitted by the UAE.
"The bankruptcy of international financial institutions could jeopardize the savings and investments of people throughout the world and affect the economic and social development plans of all countries. Such a situation requires a critical review of free market policies.
"Hotbeds of tension and international conflict have emerged as the financial crisis has not just economic ramifications, but political ones as well. In this context, it is important to find new ways of supporting economies outside the recognized international borders.
"Increasing the duration and risk of an international economic recession, it warned, would have devastating consequences. The multilateral financial institutions will be forced to withdraw many of their investments in developing countries, which, in turn, will lower demand for commodities exported by the developing countries," the memo indicated.
"Unemployment rates are expected to rise in the developed countries by more than 40 per cent and by 60 per cent in the developing countries, which could lead to exacerbated social problems in many of them. The number of unemployment claims recorded since the crisis began already exceeds 445,000.
"The collapse of global financial markets and of several major companies could further affect the world's stock markets, which have already suffered historic losses, in addition to the loss of consumer confidence.
"The disruption of international currency exchange markets has resulted from the imbalance in the neutral values of the national currencies vis-à-vis hard currencies, especially the US dollar. This could steer the global economy into disaster as a result of rising commodity prices and price imbalances between exports and imports.
"Loss of confidence in the national and international financial institutions will be inevitable, leading to a decline in national and international investment as a result of increased borrowing.
"The negative economic effects of the crisis could deepen, which would seriously affect the developing countries if the international financial crisis persists. This will place increasing economic and social pressures on the developing countries' balance of payments and increase the price of their imports.
"If the international community does not find solutions to the crisis, the total cost of the international financial crisis will increase. At present, it is estimated to cost about US$ 1.3 trillion,” it warned.
Considering the importance of parliament's role in cooperation with national governments to contain the effects of the global financial crisis that threaten the world's stability, security and development, and recognizing the collective responsibility of the international community in dealing with the international economic crisis in order to meet human development needs, eradicate poverty and achieve the Millennium Development Goals (MDGs), the UAE calls for the holding of an international parliamentary conference with international finance experts to examine the effects of the international financial crisis on the global economic system and identify ways of dealing with the consequences of this crisis and urges parliamentary committees dealing with financial, economic and trade-related issues to urgently convene meetings to identify the best ways of protecting the financial institutions and mitigating the effects of the international financial crisis until such time as a global strategy to deal with the crisis is found.
It also calls on governments to include parliamentarians in their official delegations to conferences, forums and meetings organized to discuss the international financial crisis so that parliamentarians can express their opinions and ideas as the representatives of the people; encourages implementation of internationally agreed laws and standards on the transparency of financial markets and to ensure the accuracy of financial transactions, which would enhance the national and international capacity to assess financial risks and calls for the establishment of investment and national emergency funds to reduce the potential social consequences of the international financial crisis as they relate to employment prospects, job security, rising prices and poverty, all of which are covered by the United Nations Millennium Declaration.
It calls on the central banks and currency control agencies to implement precautionary policies, procedures and measures in order to ensure the immunity of the financial and banking sectors in the coming months until the repercussions of the current international financial crisis can no longer be felt.
