UK PM Warned Of Global Financial Crisis 10 years Ago


 Gordon Brown today (27/01/09) said that he had warned of the current global financial crisis ten years ago – and that the current crisis is the birth pangs of a ‘new global order’.

The Prime Minister claimed that he had called for a stronger regulatory framework in the wake of the Asian money markets collapse in 1999.

But Mr Brown’s speech came as two new opinion polls show that Labour is losing the battle to convince voters that its anti-recession measures are working. His comments also came on the day that it emerged 75,000 jobs had been lost across the world in a single day, with more than 8,000 of them in Britain.

‘As I said in Harvard ten years ago, we need an early warning system so that international financial flows are properly monitored,’ Mr Brown said in a speech yesterday.

‘We must create a framework for the international governance that we currently lack. We must consider at a global level the regulatory deficit. For a decade I have said that the current patchwork arrangement is inadequate.’

The Prime Minister insisted the recession was just the ‘difficult birth pangs of a new global order’. Mr Brown warned that countries must see the financial crisis as the chance to forge a new financial system.

Setting the scene for April’s G20 talks in London, Mr Brown said: ‘If what happens to a bank in one country can within minutes have devastating effects for banks on a different continent, then only a truly international response of policy and governance can be effective.’
He said current ‘threats and challenges’ to the world economy should be seen as ‘the difficult birth pangs of a new global order’.

‘Our task now is nothing less than making the transition to a new internationalism with the benefits of an expanding global economy, not muddling through as pessimists, but making the necessary adjustment to a better future and setting new rules for this new global order’, he said.



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