Being part of the tilt
Wednesday, 8 April 2009
Mahmudur Rahman
Amartya Sen and Dr Mohammad Yunus have proved to the world that their understanding of economics is essentially superior to that of many touted names in the western world that largely prides itself in suggesting that they know best. This theory which the west knows best, has been lambasted by Brazil's President Luiz Inacio Lula da Silva when he said recently, "This crisis was fostered and boosted by irrational behavior of some people that are white, blue-eyed. […] Before the crisis they looked like they knew everything about economics, and they have demonstrated they know nothing about economics."
Dr Yunus has been the one who has thrown the cat among the pigeons by stating that the impressive and massive bailouts internationally are doing nothing for the poor. Demonstrators in the US late last week seemed to agree, albeit in isolation that bailouts are also required for the poor.
Da Silva was echoing the thoughts of developing country leaders who blame the collapse of financial institutions on bad management and poor regulations by the West, which they argue has robbed rich countries of the moral authority to rebuild financial standards on their own. And the new world economic order is expected to undergo a tilt through a new role for developing nations. A key economic council in Switzerland that has long operated as a club of rich nations is being planned to be expanded to include 10 developing countries. This will grant them a platform to help revamp global financial standards and take part in the supervision of the world's 25 largest banks.
Already critics have emerged to this proposition of so many developing nations being involved. They argue this could complicate the process. Howard Davies, director of the London School of Economics, told the Washington Post: "You can understand China; they are part of the global financial system now and you have to hear them out. But while we may have messed things up royally, that doesn't mean we should be taking advice from Argentina."
Davies may not be the deciding factor but he has raised a voice. It's now up to the rest of the developing world to scotch such views. The South Asian Association Regional Cooperation (SAARC) area with its massive population would do well to push for Yunus to be involved from Bangladesh. India is already in the G20 and Bangladesh is well positioned to represent the rest of the region. It is eminently do-able given that one of its former Commerce Ministers Tofail Ahmed, during the last Awami League (AL) regime represented the LDCs in the Global WTO discussions. Diplomacy of the highest order will be required but Bangladesh needs to, must be one of the 10 to participate in framing the new global economic order. It is an opportunity that cannot be missed. (The writer is a former head of corporate and regulatory affairs, British American Tobacco, Bangladesh and Chief Executive Officer of Bangladesh Cricket Board. He can be reached at e-mail: mahmudrahman@gmail.com)
Amartya Sen and Dr Mohammad Yunus have proved to the world that their understanding of economics is essentially superior to that of many touted names in the western world that largely prides itself in suggesting that they know best. This theory which the west knows best, has been lambasted by Brazil's President Luiz Inacio Lula da Silva when he said recently, "This crisis was fostered and boosted by irrational behavior of some people that are white, blue-eyed. […] Before the crisis they looked like they knew everything about economics, and they have demonstrated they know nothing about economics."
Dr Yunus has been the one who has thrown the cat among the pigeons by stating that the impressive and massive bailouts internationally are doing nothing for the poor. Demonstrators in the US late last week seemed to agree, albeit in isolation that bailouts are also required for the poor.
Da Silva was echoing the thoughts of developing country leaders who blame the collapse of financial institutions on bad management and poor regulations by the West, which they argue has robbed rich countries of the moral authority to rebuild financial standards on their own. And the new world economic order is expected to undergo a tilt through a new role for developing nations. A key economic council in Switzerland that has long operated as a club of rich nations is being planned to be expanded to include 10 developing countries. This will grant them a platform to help revamp global financial standards and take part in the supervision of the world's 25 largest banks.
Already critics have emerged to this proposition of so many developing nations being involved. They argue this could complicate the process. Howard Davies, director of the London School of Economics, told the Washington Post: "You can understand China; they are part of the global financial system now and you have to hear them out. But while we may have messed things up royally, that doesn't mean we should be taking advice from Argentina."
Davies may not be the deciding factor but he has raised a voice. It's now up to the rest of the developing world to scotch such views. The South Asian Association Regional Cooperation (SAARC) area with its massive population would do well to push for Yunus to be involved from Bangladesh. India is already in the G20 and Bangladesh is well positioned to represent the rest of the region. It is eminently do-able given that one of its former Commerce Ministers Tofail Ahmed, during the last Awami League (AL) regime represented the LDCs in the Global WTO discussions. Diplomacy of the highest order will be required but Bangladesh needs to, must be one of the 10 to participate in framing the new global economic order. It is an opportunity that cannot be missed. (The writer is a former head of corporate and regulatory affairs, British American Tobacco, Bangladesh and Chief Executive Officer of Bangladesh Cricket Board. He can be reached at e-mail: mahmudrahman@gmail.com)