ID :
31113
Wed, 11/19/2008 - 17:21
Auther :
Shortlink :
https://oananews.org//node/31113
The shortlink copeid
APEC LEADERS MUST ACT DECISIVELY TO STOP ECONOMIC ROT
From Mikhail Raj Abdullah
LIMA (Peru), Nov 19 (Bernama)-- It doesn't take rocket science to realise it takes more than just nice-sounding statements to resolve the ongoing global economic turmoil.
Bearing this in mind, Asia-Pacific Economic Cooperation (Apec) leaders
converging here for their annual summit this weekend, must resist the temptation
to issue lengthy communiqués.
Instead, they must act decisively to stop the economic rot as some
member economies are already in recession.
As such, when Malaysian Deputy Prime Minister Najib Razak arrives here on
Thursday for Apec, leaders would have their work cut out for them.
Events unfolding now from what appears to be the worst global economic
crisis since the Great Depression, warrants major economies to do more to
prevent further damage.
Apec officials can be forgiven if in the past few weeks they have been
feverishly reviewing their earlier agenda to enable leaders to have a
single-minded focus on the crisis.
Reports indicate major Apec economies such as the United States, Japan and
China cannot avoid slipping into recession.
Malaysia's neighbour Singapore is already in a "technical recession" after
recording two consecutive quarters of negative growth while many are putting in
place stimulus packages as a buffer.
The euro zone -- the 15 countries using euro as a common currency, is
already in recession do not augur well for the global economy.
At this stage, what is crucial is for Apec's 21-member economies to be more
forthcoming in calling for reform of the international financial architecture,
including rules to govern global finance.
There was a certain measure of disappointment at the just-ended G-20 Summit
of developed and major advancing economies in Washington.
Leaders there had vowed to toughen the troubled global financial system but
stopped short of calling for new restrictions on speculative hedge funds.
And speculative hedge funds have been disrupting financial markets since
the
1997/98 Asian financial crisis, something which many developing economies in
Apec such as Malaysia can attest to.
At a time when major economies are slipping into recession, the outcome of
the G-20 was relatively muted and offered little in terms of substance.
Apec must be tougher. It will be a pity if it merely endorses what the G-20
pledged in Washington, but then again, the major players are almost the same.
Much more is expected here.
But Apec's habit of not doing enough, especially when it comes to the
majors
checking themselves, is nothing new.
At Auckland in 1999 after the fallout of the Asian financial crisis, the
then U.S. President Bill Clinton led regional leaders to pledge to monitor
capital flows and check destructive speculative trade.
But nothing came out if it which is why one can be forgiven for being
pessimistic at Lima.
For one thing, leaders must bear in mind that if speculators in global
markets -- be they from their own markets or elsewhere -- are not checked,
economies will continue to suffer from uncertainties and unwarranted attacks in
the markets.
As the recent crisis has shown, both developed and developing countries are
at risk.
Nevertheless, the good thing is that the G-20 issued calls to give
developing countries more say in straightening out the world economy.
Perhaps, the membership of the Group of Eight (G-8) developed countries
should be expanded.
If emerging markets such as China and India are driving global growth, they
should be given greater clout.
On its part, China, with nearly US$2 trillion in foreign reserves due
largely to an export boom, should do more for emerging markets. So far, it has
not.
Emerging countries must also be heard as they deal with the turbulence
started by the U.S. sub-prime mortgage mess.
Morever, a global problem needs a global solution, which means measures to
tackle the financial crisis should not just be decided by the G-8 countries.
This is also because developing countries do not want unilateral action
which may affect their economies.
They too would like to strengthen their cooperation in terms of financial
solutions for this financial turmoil while having closer coordination on
policy-making.
It is encouraging to note that the United Nations last week set up a task
force to examine the possible reform of the global financial system.
Bank Negara Malaysia governor Dr Zeti Akhtar Aziz is among notable figures
appointed to the panel which will even look to reforming the International
Monetary Fund and the World Bank.
And Najib, his maiden appearance at Apec, should not hold back in
impressing regional leaders about Malaysia's experience in dealing with the
currency and economic crisis a decade ago.
This is not the time to be modest and Kuala Lumpur's experience will come
in
handy.
As events unfold, Apec leaders have what it takes to play a significant
role in ensuring fair play in decision-making to deal with the global financial
crisis.
It is incumbent upon developed countries to set up controls to reduce
trading risks.
They should not hide behind nice-sounding clichés such as a free market
economy, liberalisation and globalisation to protect destructive speculative
attacks mounted by their own financial players.
There should be some form of control, especially on rogue speculators,
who can cause havoc in financial markets.
The statement by Apec finance ministers who met in Trujillo, Peru, earlier
this month on how best to reform capital markets and address loopholes in
regulatory policies sounding promising.
This being the case, developed economies within Apec must act decisively to
stop destructive speculative elements and put global financial markets in order.
Otherwise, regional economies and those outside already affected such as
Europe, may be be asking for more trouble.
LIMA (Peru), Nov 19 (Bernama)-- It doesn't take rocket science to realise it takes more than just nice-sounding statements to resolve the ongoing global economic turmoil.
Bearing this in mind, Asia-Pacific Economic Cooperation (Apec) leaders
converging here for their annual summit this weekend, must resist the temptation
to issue lengthy communiqués.
Instead, they must act decisively to stop the economic rot as some
member economies are already in recession.
As such, when Malaysian Deputy Prime Minister Najib Razak arrives here on
Thursday for Apec, leaders would have their work cut out for them.
Events unfolding now from what appears to be the worst global economic
crisis since the Great Depression, warrants major economies to do more to
prevent further damage.
Apec officials can be forgiven if in the past few weeks they have been
feverishly reviewing their earlier agenda to enable leaders to have a
single-minded focus on the crisis.
Reports indicate major Apec economies such as the United States, Japan and
China cannot avoid slipping into recession.
Malaysia's neighbour Singapore is already in a "technical recession" after
recording two consecutive quarters of negative growth while many are putting in
place stimulus packages as a buffer.
The euro zone -- the 15 countries using euro as a common currency, is
already in recession do not augur well for the global economy.
At this stage, what is crucial is for Apec's 21-member economies to be more
forthcoming in calling for reform of the international financial architecture,
including rules to govern global finance.
There was a certain measure of disappointment at the just-ended G-20 Summit
of developed and major advancing economies in Washington.
Leaders there had vowed to toughen the troubled global financial system but
stopped short of calling for new restrictions on speculative hedge funds.
And speculative hedge funds have been disrupting financial markets since
the
1997/98 Asian financial crisis, something which many developing economies in
Apec such as Malaysia can attest to.
At a time when major economies are slipping into recession, the outcome of
the G-20 was relatively muted and offered little in terms of substance.
Apec must be tougher. It will be a pity if it merely endorses what the G-20
pledged in Washington, but then again, the major players are almost the same.
Much more is expected here.
But Apec's habit of not doing enough, especially when it comes to the
majors
checking themselves, is nothing new.
At Auckland in 1999 after the fallout of the Asian financial crisis, the
then U.S. President Bill Clinton led regional leaders to pledge to monitor
capital flows and check destructive speculative trade.
But nothing came out if it which is why one can be forgiven for being
pessimistic at Lima.
For one thing, leaders must bear in mind that if speculators in global
markets -- be they from their own markets or elsewhere -- are not checked,
economies will continue to suffer from uncertainties and unwarranted attacks in
the markets.
As the recent crisis has shown, both developed and developing countries are
at risk.
Nevertheless, the good thing is that the G-20 issued calls to give
developing countries more say in straightening out the world economy.
Perhaps, the membership of the Group of Eight (G-8) developed countries
should be expanded.
If emerging markets such as China and India are driving global growth, they
should be given greater clout.
On its part, China, with nearly US$2 trillion in foreign reserves due
largely to an export boom, should do more for emerging markets. So far, it has
not.
Emerging countries must also be heard as they deal with the turbulence
started by the U.S. sub-prime mortgage mess.
Morever, a global problem needs a global solution, which means measures to
tackle the financial crisis should not just be decided by the G-8 countries.
This is also because developing countries do not want unilateral action
which may affect their economies.
They too would like to strengthen their cooperation in terms of financial
solutions for this financial turmoil while having closer coordination on
policy-making.
It is encouraging to note that the United Nations last week set up a task
force to examine the possible reform of the global financial system.
Bank Negara Malaysia governor Dr Zeti Akhtar Aziz is among notable figures
appointed to the panel which will even look to reforming the International
Monetary Fund and the World Bank.
And Najib, his maiden appearance at Apec, should not hold back in
impressing regional leaders about Malaysia's experience in dealing with the
currency and economic crisis a decade ago.
This is not the time to be modest and Kuala Lumpur's experience will come
in
handy.
As events unfold, Apec leaders have what it takes to play a significant
role in ensuring fair play in decision-making to deal with the global financial
crisis.
It is incumbent upon developed countries to set up controls to reduce
trading risks.
They should not hide behind nice-sounding clichés such as a free market
economy, liberalisation and globalisation to protect destructive speculative
attacks mounted by their own financial players.
There should be some form of control, especially on rogue speculators,
who can cause havoc in financial markets.
The statement by Apec finance ministers who met in Trujillo, Peru, earlier
this month on how best to reform capital markets and address loopholes in
regulatory policies sounding promising.
This being the case, developed economies within Apec must act decisively to
stop destructive speculative elements and put global financial markets in order.
Otherwise, regional economies and those outside already affected such as
Europe, may be be asking for more trouble.
