OECD Home › Finance › By Date
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.
Discussions at this high-level event focused on financial literacy, behavioural economics and financial education and the importance of financial education in defined contribution pension schemes.
Are the policies that governments have put in place to stabilise the global economy and restore growth sowing the seeds for a new economic crisis? While more welfare spending and easier credit can temporarily help to shore up economic activity, they could in the medium term make the problems that caused the current crisis worse, argues William White, chair of the OECD’s Economic Development and Review Committee.
Speaking at a conference in Berlin, Angel Gurría says that a new architecture of financial reform together with sustainable fiscal consolidation strategies, structural reforms and efforts to explore new sources of growth will be essential to build a stronger, cleaner and fairer world economy.