Thursday, October 09, 2008

A possible upside to the financial crisis

They say that in every crisis is an opportunity -- for visionary and effective leaders. Well, here's one possible silver lining to the global financial crisis, courtesy of Pascal Lamy, director-general of the World Trade Organization:

He suggested the crisis might be a blessing in disguise in the long term – to drive a "grand bargain" between the global players for a more coherent system of global governance.

That would include a new Bretton Woods pact to regulate the financial world, conclusion of the Doha trade round, a new post-Kyoto deal on climate change to bring in the US as well as China and India, and reform of the United Nations Security Council.

There would be benefits for developed and developing countries, he said. Maybe it is too fantastic to hope for. At the very least it would require the wholehearted engagement of the next US administration. Washington has long been resisting more regulated global governance. But maybe this time a homegrown US crisis will prove the trigger for a change of heart.

Of course, this is the same guy who thinks the Doha Round is going to get done.

1 comment:

Anonymous said...

Je suis moins naif mais comme Lamy, et comme toi, je suis tres interesse par les consequences ideologiques et potentiellement politiques de la crise. Olivier