India moots global monitoring authority for world economy
Beijing: On a day that stock markets plummeted by more than 10 per cent worldwide, Prime Minister Manmohan Singh put on his professorial hat to tell Asian and European leaders that a “collective international effort” to the international financial crisis must involve infrastructure investments in developing countries as a “counter-cyclical device” as well as the creation of a “global monitoring authority to promote global supervision” of the world economy.
In candid and even hard-hitting remarks to the first closed session of the Asia-Europe Meeting summit which got underway here on Friday, Dr. Singh said globalisation without the structure of global financial governance had led to severe problems. “Clearly there has been a massive failure of regulatory and supervisory powers. Speculators have had a free run for far too long a period,” he said. “International institutions like the IMF have also not covered themselves with glory. There has been an unacceptable failure of effective multilateral supervision of major developed economies and in particular of what has been going on in their financial markets.”