It was supposed to be a joyous celebration of the 100th Anniversary of the Harvard Business School with an international symposium covering topics like globalisation and emerging markets. But the financial crisis has cast a dark cloud over all discussions. No one could have ever imagined that mighty institutions like Freddie Mac, Fannie Mae, Lehman Brothers and AIG could all be brought to their knees within such a short time.
Amidst the confusion, there is a woeful lack of global leadership. The problem is greatly compounded by the coming Presidential elections in the US. Whoever gets elected will have to articulate early his strategy. Whether global financial markets can wait till Nov 4 is another matter. In Europe, there is no consensus. Japan and China have every interest to go along with a coordinated approach but such an approach must first be identified.
Someone asked what the role of the IMF is in such a crisis. Unfortunately, the magnitude of the crisis is way beyond the capabilities of the IMF to put right. While US leadership is a precondition, the other major economies must also be brought along. In the meantime, the lack of clarity makes markets nervous. What we don't need now is a long interregnum in the US leading to a crisis in forex markets.
The global economy is turning down sharply. There is not going to be a quick fix. In such times, we have to go back to basics. There is no short cut to sustainable progress. This means hard work, frugality, education, good government, social discipline, strong families. Singapore's conservative instincts should serve us well provided we look after one another.
George Yeo
I think that the point about the painful lack of global leadership is very true indeed. While the global economy has been very comfortable with the "leadership" of the USA for the last couple of decades, the recent havoc spilling out of the world's largest economy has shown everyone how nothing lasts forever.
At times like this, there is really very little what Singapore can do, be it as a country, a government or as a key driver in ASEAN. I only pray that the common Singaporeans will be able to withstand the fallout of this crisis and last long enough waiting for it to end. As a nation, let us all hang on tight and rough this out together!
Posted by: HaoJun | October 12, 2008 at 12:13 AM
What about looking after our maids & foreign workers who would probably be sent back by their employers? Families and children who survive hand-to-mouth on these remittances for their day-to-day living and education expenses will be most severely impacted.
And I cannot understand how some people can go on and on about their freaking mobile phones.
Posted by: 3 blind mice | October 13, 2008 at 01:18 AM