The challenge of globalisation - Global markets need global institutions to sustain

and regulate them

Whereever I go, I see commonalities in the way in which countries view globalisation.
Let me
state clearly where I stand in the globalisation debate. I am convinced that the growing
interdependance between economies and societies is essentially positive, if steered in the
right direction. Positive, because this interdependence means more efficiency in the
allocation of resources and a powerful incentive for innovation. But only if steered, that is
with corrective action to prevent inequalities between and within nations from becoming
politically and socially unbearable and to prevent economic growth from depleting scarce
natural resources.
You will have realised from these remarks that I'm not a "market sceptics" but equally not
a
"market fundamentalist" who believes that the allocation of resources can simply be left
to
the markets and that any interference with the market mechanism is bound to be
counterproductive. On the contrary, global markets need global institutions to sustain and
regulate them. We should reject the notion that unfettered market forces should dictate
our
way of life, our culture, and ultimately the nature of our society and our core values.
Why ? Because at heart such an approach is inimical to our concept of what constitutes
responsible government and a society that is fair as well as free. We are confronted
therefore with the challenging task of reconciling the way in which we manage our
societies
and values with the need to modernise and to integrate into the global economy.
Take some of the challenges that Argentina face, and which in some respect concern also
Europe. The macroeconomic crisis in Argentina and the slowdown world-wide show that
the
most vulnerable people and countries are the first victims. These de