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No cash from emerging economies until given more clout, says Saudi Arabia DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

No cash from emerging economies until given more clout, says Saudi Arabia

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No cash from emerging economies until given more clout, says Saudi Arabia Empty No cash from emerging economies until given more clout, says Saudi Arabia

Post by Happy Life Tue Jan 24, 2012 8:29 am

SAUDI ARABIA. Big emerging economies such as China, India and Saudi
Arabia will not aid the West in its financial crisis unless they are
given more influence in running the global economy, a senior figure from
Saudi Arabia's ruling establishment said on Monday.
"The financial crisis and great recession were born in the West,
developed in the West yet hit hard throughout the world," former Saudi
intelligence chief Prince Turki al-Faisal said in a speech to a business
conference in Riyadh.

He said this showed the need to give emerging economies more
representation and more authority in global bodies such as the Group of
20 nations, a forum of the world's major industrialized countries, and
the Financial Stability Board (FSB), which discusses regulation of banks
and financial markets.

So far, however, organizations such as the FSB "have yet to take
these new realities into consideration," while the G20 is making little
headway in coordinating economic policymaking around the world, he said.

Big emerging economies' lack of influence in international bodies
reduces their willingness to contribute money to fight the global
crisis, the prince warned.

The International Monetary Fund is seeking to more than double its
war chest by raising $600 billion in new resources to help countries
deal with the fallout of the euro zone's sovereign debt crisis.

"What we can be certain of is that large developing nations will not
agree to provide additional funds without a greater say in the IMF, and
this applies to all global economic governance organizations," Prince
Turki said.

The prince, who chairs the King Faisal Center for Research and
Islamic Studies, a major think tank, no longer holds government office
but is still seen as influential, and his position outside government
may give him room to speak more frankly in public than current Saudi

He is a former ambassador to the United States and Britain.

His speech criticized Western governments for "leveraging up" their
economies over the past six decades and letting their financial sectors
spiral out of control, saying the United States and the European Union
would continue to struggle with debt problems for five or 10 years.

Much of his criticism echoed comments by officials in China, another
emerging economy that is being asked to help fight the global financial

Oman's central bank governor told Reuters last week that his country was prepared to increase its contribution to the IMF.

In general, however, officials in the Gulf's rich oil exporters have
indicated they are in no rush to contribute funds to bail out the West,
and expect Europe first to do more to resolve its debt crisis.

Prince Turki noted that the Saudi central bank's holdings of roughly
US$360 billion in foreign securities, most of them in the form of U.S.
Treasuries, helped to underpin the value of the U.S. dollar and the
stability of the global economy.

He said his country would continue to play a stabilizing role but
added that because it faced its own challenges, including the need to
create jobs for a young population and cope with political strains
across the Arab world, it would need in the future to focus more of its
resources domestically and within the Middle East.

The Arab Monetary Fund, a regional body which lends to governments,
and Saudi development funds such as the Islamic Development Bank need to
be strengthened to help the Middle East develop economically, he said.

"We will continue to support our neighbors where we are able,
including financially, but now we also face new exigencies of our own,"
Turki said.

Being HAPPY doesn't mean everything is perfect.
It means that you've decided to look beyond the imperfections!
Happy Life
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