“World markets need global governance. Their regulation, which is currently too bogged down, has it’s roots in national sovereignty. …In addition, he said, the new system should be part of the UN, and especially the Security Council, so that you can also control processes such as global warming and the global nuclear threat.
Thursday, Nov 5th, 2009
China’s economy will be the first to emerge from the financial crisis, and its model will soon take the leading position among the world’s economies, leaving behind the current leader the United States. This forecast was announced on Monday by leading financier George Soros.
According to him, China will play a primary role in the formation of a new model capable of lifting the entire global economic system from the ashes. In addition, Mr Soros said that “China has become the country that receives the greatest benefit from globalization, and has been least affected by the current financial crisis. Soon the country will become a world economic leader, therefore, the world’s dependency on it is not far off.”
The financier also said that at this point the recession is far from over, and those who believe it’s the beginning of stabilization of the world economy are profoundly mistaken.
Soros gave his pessimistic view on the current economic situation during a week-long series of lectures he is giving at Hungarian universities.
Soros said that the economy can only be saved with the cooperation and assistance of all countries, as well as reorganization and revision of the existing system. “Complete freedom of movement of capital around the world proved to be ineffective and should be stopped”, – he stressed.
“World markets need global governance. Their regulation, which is currently too bogged down, has it’s roots in national sovereignty. We should be adopting a new system of control, which would simultaneously satisfy the interests of all countries. The system can then decide which of the financial organizations become too large and require a division, there must also be new rules to control the movement of capital “, – said Soros.
In addition, he said, the new system should be part of the UN, and especially the Security Council, so that you can also control processes such as global warming and the global nuclear threat. “The creation of this system must be initiated by the United States, but other major countries should enter into it on an equal footing,” – he concluded.