Reform global financial system: Economist

AS MOST countries have provided short-term measures to deal with the global financial crisis, the challenge now is to reform the global financial system, a task described by economist Dr Jomo KS as a tough one.

"The reforms of the system are not going to be easy and that would be a medium-term challenge. But it is important for all countries and stakeholders to have a say, some voice in the participation (of the reform).

"New innovative ways must be found to engage these countries," he said in a public lecture in Kuala Lumpur on Thursday night, organised by the Chevening Alumni of Malaysia.

Jomo, who was recently appointed one of the members of the United Nation's Commission of Experts on Reforms of the International Monetary and Financial System, said the current financial crisis could have been avoided as economists had in recent years warned of the flaws of the financial system.

Jomo, a former UM lecturer, has been assistant secretary general for economic development in the United Nations (UN) department of economic and social affairs since January 2005.

He joins central bank governor Tan Sri Dr Zeti Akhtar Aziz on the high-level UN task force.

The body will examine possible reforms of the global financial system involving reforms in the International Monetary Fund and the World Bank.

Speaking briefly to the press after the lecture, Jomo said the first formal meeting of the members will take place next month.

Currently, he is involved in a lot of preparatory work where he mainly deals with the chairman of the commission, former World Bank chief economist Joseph Stiglitz.

NST