The Global Financial Crisis: Lessons Learnt and the Way Forward

The Global Financial Crisis: Lessons Learnt and the Way Forward

  • 5 May 2010

HE Tun Dr. Mahathir Mohamad confirmed that the recent global financial crisis would not have happened had all politicians, economists and researchers looked into the causes of the financial crisis that hit the Asian countries, including Malaysia, in the 1990s, and drawn lessons from it. He indicated that one of the salient reasons behind the crisis is government nonintervention in the market. This is in itself a fatal mistake, because the market should not be left for those who are not concerned with society’s economic welfare as much as they are interested in reaping huge profits. He revealed that during the 1990s financial crisis, a number of Asian countries implemented the methods of the World Bank and the IMF but none of them succeeded in overcoming the crisis, except Malaysia, which neglected such a recipe and adopted interventionist economic policies. He said we should all reconsider our thinking about the misuse of laws and legislations concerning financial and monetary systems, and the laws of free international trade which have proved to harm poor countries more than their rich counterparts. He argued that much fraud and speculation is committed in the name of these laws and competition. Finally, he urged the world to think seriously about the need to adopt gold as a determinant of exchange rate according to gold prices instead of currencies such as the dollar and euro, which become increasingly risky to deal with. He also called upon national governments to support small and medium-scale industry projects.

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LECTURER

Wednesday 5 May 2010

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Wednesday 5 May 2010

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