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.