Need for Restructuring International Financial System… Says PM Golding

Prime Minister, Bruce Golding, says there is a clear need for the restructuring and re-engineering the international financial system. He is of the view that the world has been moving on a trajectory that has not fully embraced the new realities in the world economy.
He said financial regulators were struggling to catch up and have failed to realise that so much has changed and that there is the reality of a place called China, that is impacting on the world economy in a significant way.
Mr. Golding was addressing a press briefing and breakfast meeting, with representatives of several leading Caribbean news agencies at the West Club in Manhattan, New York yesterday morning (Sept 22). Mr. Golding is in New York to attend and address the 63rd Session of the United Nations General Assembly.
During yesterday’s press briefing, Mr. Golding updated Jamaicans on the Government’s performance in its year in office and the impact of the downturn in the world economy. He said there is the need for reform and for the multilateral system to take a new approach in relation to countries like Jamaica, which is regarded as a middle income country. He noted that the emphasis is on poor countries like those in Sub-Saharan Africa, where there is intense poverty. However, he said a point that escapes leaders of the world economy, is that 41 percent of the poor live in middle income countries like Jamaica.
“We can’t talk about tackling poverty if you exclude the target group that you are trying to alleviate”, he said. Mr. Golding said one of the disappointments experienced by his Government, was that the level of investment was less than had been expected because of the turbulence of the global situation.
Mr. Golding noted that the situation has been further compounded by the catastrophic events on Wall Street and that even though we are some distance away, they have a direct impact on us, in terms of the global environment and the responsiveness of capital, to emerging market overtures.
Mr. Golding said the system at the moment does not have enough built-in warning signals to say there is danger is ahead. He said the response mechanism seems to be isolated and disconnected, which is why there were conflicting signals from the US in how they handled the Wall Street situation.
“Something needs to be done. The world economy can’t be managed on this roller coaster approach”, Mr. Golding said. He added that a group of world leaders, led by Britain’s Gordon Brown, would be focussing on these issues during meetings scheduled for later this week.
Mr. Golding will be addressing the UN General Assembly on Friday morning (Sept 26).