OVERCOMING THE CRISIS

Summer 2009

by Béla Kádár

The nature of this crisis is that it includes not only financial and cyclical roots but that it also reflects institutional and value differences. A sound international system that aspires to run and strengthen a market economy as well as a political democracy has to be based on institutional checks and balances.

During the past three decades, increasing imbalances and asymmetries have emerged in our international power structures. The global economy has become dominated by large transnational corporations, and in the absence of global political governance and control mechanisms, unfair and irresponsible business practices have gained ground and led to the crisis we all face.

The inadequacy of our capacity to respond to global challenges, and even to correctly diagnose the crisis, suggests the therapy. If we wish to save both the market economy and democracy, governance has to step in where corporations ruled but markets failed. Regulation, supervision and auditing at global, regional and national levels all have to be strengthened and given teeth; international co-operation has to be intensified, particularly when determining financial, trade and cyclical policies.

Further articles in this  OVERCOMING THE CRISIS section
Edmond Alphandéry	"It's up to Europe to set a global example of concertation"
Jerzy Buzek	"Let's return to the grassroots and base growth on savings and productivity"
Mark Eyskens	“My 10 point rulebook for the globalised economy”
Franz Fischler	“What we need first and foremost is a change in public consciousness”
Nicole Gnesotto	"We need a new global political deal now the West is no longer master of the world"
Béla Kádár	“To save the market economy and democracy, governance has to step in where corporations ruled and markets failed”
Noëlle Lenoir	"My five courses of action"
John Monks	“The financial markets are where the re-building must start”
Poul Nyrup Rasmussen	"The EU must pull its weight and demonstrate real leadership"
Klaus Regling	“Better regulation and supervision, and the greater legitimacy of international financial institutions”
Onno Ruding	“Implement de Larosière and then consider further reform”
André Sapir	"Restoring the health of banking is no longer a financial problem but a political one"
Tøger Seidenfaden	“We urgently need much stronger international institutions"
Constantine Simitis	“Fiscal stimuli, yes. But social goals are also crucial”
Loukas Tsoukalis	"To be a major player on the new global architecture, Europe must end its IMF over-representation"
Alvaro de Vasconcelos	"Now it's the West that needs the Rest"
George Vassiliou	"How to beat this crisis and head-off another"
Nicolas Véron	“Institutional innovation, not streamlining, is today’s priority”
Stephen Wall	“We need a eurozone regulatory structure, and if Britain wants a role it must manage its eurozone entry”
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