SHANGHAI, Oct. 25 -- Leaders from Asia and Europe on Saturday called
for new rules and stronger regulation of the global monetary and
financial system at the close of a two-day summit in Beijing as China assumed a new leadership role in the crisis.
Chinese Prime Minister Wen Jiabao said the world's economic problems
had become so massive that measures beyond the many billion-dollar
bailout packages already announced might be necessary to avert further
damage.
"We are very glad to see that many countries have taken measures
that have initially proved effective. But this is not enough given the
current situation, and more needs to be done," Wen said Saturday, a day
after dire corporate earnings reports from all corners of the world
pushed Wall Street to a five-year low.
Wen also said stricter regulation might be key to recovery. "Lessons
should be learned from the financial crisis, and the responsibilities
should be clarified for governments, companies and supervision,
respectively," he said.
The Asia-Europe Meeting, last held in 2006, traditionally does not
result in any policymaking. This year's gathering, however, had taken
on a new urgency as the world teeters on the edge of a global
recession.
In a joint statement, the more than 40 world leaders in attendance --
including Japanese Prime Minister Taro Aso, German Chancellor Angela
Merkel and French President Nicolas Sarkozy -- said they recognized
"the need to improve the supervision and regulation of all financial
actors, in particular their accountability" and pledged "to undertake
effective and comprehensive reform of the international monetary and
financial systems."
Although the leaders spoke only of broad principles and did not
offer details on specific proposals, it was clear the groundwork was
being laid for a Nov. 15 meeting on the crisis that President Bush is
hosting in Washington.
The Beijing meeting appeared to be a victory for Sarkozy, who has
taken the lead in representing his European Union colleagues in pushing
for an overhaul of the world's financial systems and the creation of a
new "regulated capitalism" as soon as possible. Sarkozy has said such
steps cannot wait until a new U.S. president takes office.
President Bush has said, however, that enacting ideas into law "must
be a top priority for the next president and the next Congress."
Sarkozy said Asian leaders have joined their European counterparts
in expressing a "willingness for the Washington summit to be a place
where we make some decisions, and we have all understood that it would
not be possible to simply meet and have a discussion. We need to turn
it into a decision-making forum."
The major issues expected to be addressed by world leaders in the
coming months and years include the future role of the International
Monetary Fund in stabilizing economies, currency reform and measures to
help prop up cross-border banks.
The participants in the summit said the IMF "should play a critical
role in assisting countries seriously affected by the crisis." Merkel
called for the IMF to become a "guard for the stability of the
international finance system" but it did not offer further guidance.
