Posted by: mulrickillion | October 13, 2011

WTO | News – Speech – DG Pascal Lamy – Lamy makes a strong plea for global co-operation

WTO NEWS: SPEECHES — DG PASCAL LAMY

6 October 2011

Lamy makes a strong plea for global co-operation

Director-General Pascal Lamy, in a speech at Deutsche Bank in Berlin on 6 October 2011, said: “What we need is an international monetary system which facilitates international trade, cross border investment and a better allocation of capital across nations. What we need is a global monetary system which inspires confidence and offers stability. One which provides the means by which global imbalances that risk endangering stability can be addressed. Differently put, we need to do for international monetary relations what we already did for trade: move from the world of Hobbes towards the world of Kant.” He added: “Trade is not immune to this global state of affairs. And here too, unilateral solutions will not work.” This is what he said:

What Multilateral Trading System for the Future?

Many thanks to the Deutsche Bank Research and Klaus Deutsch for having put together this event to look at the multilateral trading system of the future. And what better place to do this than Germany, a country which has firmly anchored the European trade policy in the values and principles of the multilateral trading system embodied by the WTO.

Multilateralism is going through a patchy period. Whether it is on trade, on climate change, on financial regulation or on macroeconomic co-ordination, the family of nations is having trouble defining and implementing common strategies in response to the global challenges facing us.

More than that, it is the concept of “cooperation” that is being questioned. We hear more and more voices proclaiming a return to national solutions, a return to the nation-state, as a recipe to shield themselves from the turbulence around us. We even hear some advocate a return to the D-mark!

Take the example of monetary policies.

Some countries believe that policies on domestic currencies should be determined solely by national interests and that there should be no outside interference.

Other countries believe in using external forces such as trade or other types of sanctions to coerce others to change their monetary policies.

The reality is that neither of these will work. Today’s economies are largely intertwined.  Monetary policies do not operate in a vacuum — they cannot be made to function in the national interest unless they function in the global interest. And the only way to achieve this is through global cooperation. . . .

G Pascal Lamy – Lamy makes a strong plea for global co-operation

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