Make IMF independent watchdog to prevent financial crises: Brown

January 21st, 2008 - 4:59 pm ICT by admin  

A file-photo of Gordon Brown
New Delhi, Jan 21 (ANI): British Prime Minister Gordon Brown today proposed turning the International Monetary Fund (IMF) into an independent watchdog that would form the heart of a global early warning system against financial turbulence.
“I propose that the IMF should act with the same kind of independence as a central bank in a national country. It should make its focus on the global economy and financial system. Its role should be to prevent crisis and not simply to manage or resolve them as in the past, he said while addressing Captains of Indian industry at a business meet here.
In a wider role, the IMF working with global and economic stability forum should be at the heart of what we need an early warning system evolving regulatory and supervisors in all countries for financial turbulence effecting the global economy, he added.
Brown also said the IMF should develop a financial instrument to insure “well-managed economies against sudden reversals of capital flows” but gave no details.
He backed changes to the IMF, World Bank and the Group of Eight industrial countries that reflected the rise of India and Asia.
Brown said he supported India’s bid for a permanent U.N. Security Council seat.
Brown also called for creation of rapid response teams of police and experts, which could move quickly to restore order and begin rebuilding after conflicts.
He further said that Britain would play a lead role in efforts to speed up nuclear disarmament “and to ultimately achieve a world free from nuclear weapons”.
London would also press for early agreement on a new international system to help non-nuclear states acquire new sources of energy, he added.
Brown called for the creation of a multi-billion-dollar global climate change fund within the World Bank to finance environmentally sustainable development in the poorest countries.
He believes the rapid spread of the credit crisis last year after problems with U.S. sub-prime mortgages points to failings in global financial supervision, which must be fixed.
Brown, who started the day with the ceremonial guard of honour at Rashtrapati Bhawan, also paid a visit to Rajghat, memorial of Mahatma Gandhi, for the wreath laying ceremony. (ANI)

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