Financial meltdown: Brown seeks to expand the crisis club with G20 news
27 September 2008

Mumbai: British prime minister Gordon Brown has suggested that the G20 countries come out with strategies to resolve the global financial mess as the effects of the US financial meltdown extends beyond the G8.

During a meeting with prime minister Manmohan Singh on the sidelines of the UN General Assembly in New York, Brown supported the suggestion from the economist-turned politician for a new international initiative to bring structural reform in the global financial system.
 
Brown also agreed with Singh that the existing global financial architecture was not robust enough to deal with the international turbulence in financial markets.

Highlighting the need for broader strategies, Brown said the G-20 with better financial discipline will be better-equipped to deal with the problem.

Singh said restoration of financial confidence is the need of the hour for the healthy growth of the economy. He said he will be too happy to work with Britain and other countries to give his expertise and work on ways to overcome the financial crisis.

Manmohan Singh, a former World Bank economist, suddenly finds himself in a situation where world leaders, including US President George W Bush, looking to him to evolve ways to deal with the financial turmoil.

Addressing the UNGA session, Singh called for a new international initiative to bring structural reform in the world's financial system with more effective regulation and stronger multilateral surveillance system.

He blamed the crisis on financial innovation unaccompanied by credible systemic regulation has made the financial system vulnerable. ''The resulting crisis of confidence threatens global prosperity in the increasingly interdependent world in which we live," Singh said.

He also attributed the financial fragility of the global economy for the current crisis. The financial meltdown earlier used to affect the periphery only but now it has hit the centre too, he pointed out.

The two leaders also felt that there should be better coordination for coordinated actions to increase the confidence level in the financial system.


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Financial meltdown: Brown seeks to expand the crisis club with G20