Urgent need for new global financial system, says Najib

By Sunday November 23rd, 2008 No Comments

LIMA (Peru), Nov 21 – Malaysia wants a new global financial architecture drawn up soon to combat the financial crisis, Deputy Prime Minister Datuk Seri Najib Razak said yesterday.

He said a fresh global financial architecture was needed and must be formulated soon as many financial products today involving huge financial value were not bound by regulations.

“Definitely, the time has come for the international community to draw up a Bretton Woods II system,” he told reporters on arrival here for the two-day Asia Pacific Economic Cooperation leaders’ meeting beginning tomorrow.

The Bretton Woods system to regulate the international monetary and financial systems for the world’s major industrial countries was borne out of an agreement signed in July 1944 in Bretton Woods, New Hampshire, the United States.

Aimed at rebuilding the international economic system as the Second World War was raging, it led to the setting up of the World Bank and the International Monetary Fund.

However, multilateral organisations have increasingly come under fire for being irrelevant and not being able to stop financial crises.

Najib said Malaysia would state its stand at the Apec leaders’ summit that the global financial and trading systems must reflect the open global trading system.

“It should be devoid of elements of protectionism and be inward-looking. Whatever we do must be fair to the G-20 member countries and also emerging economies including Malaysia,” said Najib, who is also Finance Minister.

The Deputy Prime Minister said the international community expected leaders attending the Apec summit to decide on something “constructive and accurate” to tackle the global financial crisis plaguing the world today.

“We need fiscal stimulus and monetary policies to protect our economy from deteriorating and slipping into domestic recession and also global recession.

“I will touch on internal measures that can be taken by Malaysia and other countries,” he said.

Terrorism, piracy, climate change and food and energy security issues would also be discussed at the summit, he added.

Source : The Malaysian Insider

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