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The crisis has left a legacy of nearly bankrupt governments. There is little doubt that all countries among the advanced economies are now in urgent need of implementing a credible medium-term fiscal consolidation strategy, argues Jean-Claude Trichet, president of the European Central Bank.
The world economy is recovering, but many challenges remain to eliminate global imbalances. Countries must address the crucial question of capital movements while deepening their commitment to structural reforms, according to OECD Secretary-General Angel Gurría.
Reforms of financial regulation have made some progress, but a lot more still needs to be done. Speculation and greed were among the root causes of the meltdown, and as our guest, Ami Domini, CEO of Domini Social Investments, argues, they are not impossible to fight.
For more than two decades, the world's economic growth and development was largely fuelled by globalisation-the opening up of financial and product markets, and the emergence of economies such as China, India and Brazil. This process was hit by an earthquake with the global financial crisis of 2008, an event which some have dubbed the “first crisis of globalisation”.
The financial system has still not fully recovered. Major questions remain over how banks operate and are regulated. The solutions must be found, argues William R. White, Chair of the OECD Economic and Development Review Committee.
The recent economic crisis inflicted substantial damage on the public finances of many countries around the world. Meanwhile, growth remains largely subdued. How can governments restore public finances while promoting economic growth?”
Public finances are under pressure around the world. We asked finance ministers from a range of countries: “What actions is your government taking to bolster public finances, while upholding growth and services?”
Public debt in the OECD area is fast approaching 100% of GDP, as the financial and economic crisis badly deteriorated government budgets. A concerted move towards more balanced budgets is needed, while preparing the ground for economic growth.
Discussions at this high-level event focused on the financial empowerment of individuals globally but with a particular focus on the Middle East North Africa region.
At the heart of the crisis are failures of financial regulation, of supervision, of risk management and of corporate governance.