Australian Foreign Minister and former Prime Minister, Kevin Rudd, has called for reform of the global financial sector at the 66th General Assembly of the UN on Thursday 22nd September 2011.
Mr Rudd recognised that in order to counteract the destructive activities of major financial institutions, a political innovation would be required that acted beyond each electoral cycle. Furthermore, he noted that moral accountability and an international scope would be required of political leaders bringing the market to heel:
“Our global institutions are struggling to comprehend, let alone effectively respond to, this vast array of challenges that now confront us – challenges that arise as the inevitable consequence of what we now call globalisation.
“Put simply, the dilemma is this – the challenges we face are increasingly global while the institutions at our disposal are still primarily national.
“Or put more crudely again, for those engaged in democratic politics: “the answers may lie abroad, but the votes ail lie at home”.
“…the Financial Stability Board and Basel II recommendations must be implemented for the global financial sector s0 that global taxpayers are no longer asked to bail out the irresponsible behaviour of major financial institutions. Some of these institutions have become far too comfortable with the practice of privatising their profits and socializing their losses.”
The Minister pointed to the IMF warnings for growth in 2011 and 2012 as a reason to resist protectionism, work towards “credible” government surpluses and reform the management of the Chinese Yuan. He also proposed getting women into work and creating jobs through a comprehensive world carbon market as a means of stimulating growth.