The New Nation - Internet Edition

DEVELOPING countries including Bangladesh have joined the United Nations in calling for 'more money' and 'a greater role' in regulating the world economy in the wake of the worst global recession, which in fact, has taken a disproportionate toll on poor nations. At the three-day UN financial conference at its headquarters, country after country laid blame for the crisis on financial liberalisation and deregulation in the United States and other rich nations and said it is time to reform the world financial system under the auspices of the United Nations.

The reforms based on the belief in the efficiency of the market and the diminution of government did not work, as reforms are needed to enhance productivity and capacity to cope with crisis as it was stressed at the conference. Economist Josef Stiglitz, who headed the commission of experts and financial monetary reform that developed recommendations for the conference, said that 'as globalisation has proceeded we haven't created global financial institutions.' He called for the creation of a 'global economic coordination council' to deal with the fallout wrought by the crisis that began in 2008.

The draft final document however, calls on the International Monetary Fund, the World Bank and other lending institutions to be flexible in imposing conditions on developing countries so they can take action to deal with the economic crisis, including adopting stimulus packages. What the Nobel Laureate economist suggests is that it needs to be an inclusive process of decision and not the G-8, not the G-20, but the G-192 referring to the Group of Eight major industrialised nations, the Group of 20 key economic powers, and the UN's 192 member nations - meaning no compartmentalisation anymore, but by all collectively.