Appetite for Reform Waned
pg. 7: For several months in 2008-09, when the full extent of the world economy’s systemic weaknesses and cooperative deficits were laid bare, there was a popular and diplomatic consensus on the need to make fundamental changes. But as the world economy has begun to recover from recession and governments have begun to focus on fiscal and social strategies to exit from the crisis, the appetite for fundamental improvements in international governance and cooperation appears to have waned.
Readers' Guide Comment on “appetite for fundamental improvements in international governance and cooperation appears to have waned”
The motivation for fundamental change was also undercut by the willingness of the OECD 1 governments to ‘solve’ the short term capital crisis of the financial industry without extending public policy oversight to the ‘cash gifts’ made to the banking sector or seeking civil or criminal sanctions against the financial community. These inactions removed a potentially significant financial and political stimulus for change by other elite leaders of the OECD economies. And these government actions did not do is address the fundamental governance issues and the systemic global risks. These problems may well have to wait for a second global financial crisis, when the OECD states no longer have sufficient resources or political capital to prop up the finance sector with cash infusions.
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- 1. ^ The Organization for Economic Cooperation and Development (OECD) is a Paris based think tank for the Northern country governments.