U.N. Official Calls for 'Drastic' Reform of Financial System
ASIA BUSINESS Updated March 25, 2012, 12:49 p.m. ET
LONDON—The international financial system requires "drastic" reform if future crises are to be avoided, including more regional initiatives to tackle misaligned exchange rates and the wider use of capital controls, the head of a United Nations agency said.
The United Nations Conference on Trade and Development has long been critical of what it calls "financially driven globalization" and warned of its consequences ahead of the 2008 crisis.
Supachai Panitchpakdi, head of the United Nations Conference on Trade and Development, said capital flows don't translate into real capital formation.
But as the agency prepares for the quadrennial gathering of its 194 government members in Qatar next month, its secretary-general believes many of the flaws in the functioning of the global economy that led to the crisis remain.
"If we do not do something more drastic with the international financial regime, then this will come back," said Supachai Panitchpakdi in an interview Friday.
ASIA BUSINESS Updated March 25, 2012, 12:49 p.m. ET
LONDON—The international financial system requires "drastic" reform if future crises are to be avoided, including more regional initiatives to tackle misaligned exchange rates and the wider use of capital controls, the head of a United Nations agency said.
The United Nations Conference on Trade and Development has long been critical of what it calls "financially driven globalization" and warned of its consequences ahead of the 2008 crisis.
Supachai Panitchpakdi, head of the United Nations Conference on Trade and Development, said capital flows don't translate into real capital formation.
But as the agency prepares for the quadrennial gathering of its 194 government members in Qatar next month, its secretary-general believes many of the flaws in the functioning of the global economy that led to the crisis remain.
"If we do not do something more drastic with the international financial regime, then this will come back," said Supachai Panitchpakdi in an interview Friday.