G20 role crucial for global financial system: Wolin

Addressing the plenary session of global economic governance after the crisis at the 10th Jeddah Economic Forum here on Sunday, moderated by Sulaiman Abdul Rahman Alsheikh, the associate dean of development in the faculty of economics and administration at King Abdulaziz University, Wolin said that there was widespread debate on the global financial crisis and the global financial system was currently undergoing a significant transition, which involved widespread restructuring.

Wolin acknowledged that in the past, the United States had bought too much and saved too little; this was no longer an option. In addition, US public finance must be put on a sustainable track. "The US can no longer be the single driving engine of the world economy. The crisis has shown that the economies of all countries are intertwined and that all nations must do their part to build the new financial system, which must be stronger, safer and sustainable," he said.

In terms of the core reforms necessary to strengthen the global financial system, Wolin mentioned: Constrain risks; build strong supervision; reform compensation in the financial sector and put an end to the idea that any financial system was "too big to fail."

Kazakhstan Minister of Trade and Industry Asset Issekeshev addressed the global financial crisis from the viewpoint of Kazakhstan.

He indicated that a number of factors will allow Kazakhstan to contribute positively to the solution of the global financial crisis. These factors include: Positive GDP growth; a new strategic plan introduced two weeks ago that focuses on diversification and new investments; initiation of Islamic financing in Kazakhstan; and a new customs union linking Kazakhstan, Russia and Belarus, Kazinform cites The Arab News.

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