Thema: Regulation after the Crisis: Six Perspectives
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11/09/2009 16:15:00
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Webteam, Team
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For Michael Klein, the global economic crisis has raised three major issues. The regulation of financial markets is an obvious concern. More broadly the role of the state in the economy has been questioned. Finally, the global nature of finance has placed cross-border regulatory issues at the center of the agenda. While it is too early for a definitive verdict on these issues, Klein puts forward six perspectives on the likely consequences of the crisis for the broad regulation agenda:
o The crisis demonstrates the centrality of regulation as the central economic function of government rather than that of ownership
o The key financial sector regulation challenge is to establish a systemic regulator with exceptional disciplinary powers while still maintaining legitimacy
o The financial sector crisis helps shift the debate from “market versus state” to “better regulation” combining competition with regulatory discretion
o Globally, limited cross-border rule-making and enforcement capability limits the ability to face key regulatory challenges – finance included
o Global regulation needs to be created out of a patchwork of collaborative efforts – a form of global feudalism with competing jurisdictions
o Competition remains a mechanism of choice for regulatory systems to combine the need for trust and the ability to establish discipline
Discuss his perspectives in this forum: are these observations accurate? Are Klein's policy proposals feasible - and desirable? What are the alternatives?
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