Dr. Ghali in the Royal Institute of International Studies in London: the importance of increasing public spending to face the economic slowdown and declining incomes and rising unemployment worldwide
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- Protectionist policies of the major countries is harmful to the interests of poor and emerging countries
- Warnings of the inability of developing countries to expand social safety networks during the coming period.
Dr. Youssef Boutros Ghali, Minister of Finance and head of Monetary and Financial Committee of the International Monetary Fund assured that the increase of public spending as a means to face the repercussions of the financial crisis to the economic slowdown and declining incomes and rising unemployment rates in the world, warning of the impact of expansionary fiscal policies pursued by the major countries with the interests of developing countries.
In this context, referring to the initial three cases, first: the developing countries and emerging markets may not have the financial resources that allow them to pursue expansionary fiscal policies as they may not have the resources necessary to support the expansion of social safety nets during the coming period in order to cope with the decline in incomes and higher rates of poverty and the provision of basic social protection for their people.
The minister emphasized that the second issue is that the protectionist policies that may be taken by some major countries to facilitate the financing of local investments at the expense of the financing of international investments will limit the access of developing countries to finance its development projects to the appropriate terms.
And for the third issue Dr. Ghali added that the entity of the Group of Twenty, which is an informal group made up of 19 of the largest countries in the world in addition to the European Union is a group not representative of the nations of the world in any way ,On the other hand there is the International Monetary Fund which has been established by an international convention and a membership of 185 countries. In this regard, Dr. Ghali pointed out the importance of the Fund's support and development tools, financial control, financial tools available so that it can play its role to better oversight and provide technical and financial support to developing countries in the coming period.
This came through the participation of Dr. Ghali, in a seminar organized by the Royal Institute of International Studies "Thazm House" summit in London,
a group of twenty from multiple perspectives" and moderated by Dr.. Nibelt Rubin, Director of the Institute and co-sponsored by Lord Malloch Brown, the Special Envoy of the Prime Minister of Britain for the Group of Twenty, and Stephen Roach, Chairman of the Board of Directors of the Foundation, Dr. Morgan Stanley. Paula Supachai research director of the Institute, and Dan Price, the White House envoy for the Group of Twenty.
(Source: Ministry of Finance)
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