Thursday, October 9, 2008

Mandelson: financial crisis "defining moment for economic globalisation"

Brussels, 3 October 2008

EU Trade Commissioner Peter Mandelson has said that the banking crisis must force political leaders to confront the need for greater European and global governance of financial markets.

Writing in "The Guardian", Mandelson argues that preserving the powerful global economic networks that have helped drive three decades of global economic growth – but which can also transit the effects of the risk-taking that have caused the current crisis – will mean a new commitment to global economic governance. Referring to the conference that created the current institutions of global economic coordination Mandelson writes that "it is time for a Bretton Woods for the next century" – one that takes in not just Europe and the US, but emerging powers such as China.

Arguing that economic globalisation is unsustainable without effective governance, Mandelson writes: "We have nothing to gain by shutting down financial globalisation. But the networks that make up globalisation will keep transmitting the shocks along with the benefits unless we take a tougher line with excessive risk and strengthen the multilateral instruments that govern the global financial system".

Read the full article in The Guardian