Zoellick calls for rethink on global economy

by Richard Kilner

Story link: Zoellick calls for rethink on global economy

President Robert B. Zoellick of the World Bank has said that the way the world handles economic crises must be rethought.

Zoellick’s comments come as the world grapples with a crisis that is engulfing financial markets across the globe, sending the FTSE plunging to a loss of 7.85% and France’s Cac 40 down over 9%.

The president also called on whoever occupies the White House after the US election this November to work on improving and modernising the present multilateral system to promote a wider responsibility for the state of the global economy.

The G7, he said, is simply not working, and needs to be expanded to include countries such as Brazil, China, India, Mexico, Russia, Saudi Arabia, South Africa and remodelled to become a Steering Group.

The proposed Steering Group would not merely be the G7 with more nations, but a dynamic authority that evolved as global demands change, with Zoellick describing the need for a Facebook for multilateral economic diplomacy.

The developing economies of the world would be hit very hard by the present financial crisis, he warned, possibly triggering banking emergencies.

Zoellick also stated his belief in a revamping of world aid, and a broadening of the definitive terms of economic multilateralism.