The worst of the global economic and financial crisis may take another year to pass, but a return to business as usual is not an option. Beyond the current raft of stimulus packages and regulatory measures, long-term, structural reform will be needed to set the global economy and development efforts on a sounder course.
That was the subtext of the United Nations Conference on the World Financial and Economic Crisis and Its Impact on Development, which convened in New York from 24 to 26 June. The Conference outcome document took stock of the IPU's work in response to the crisis, including the Global Parliamentary Conference of last May. It clearly states, "we [Heads of States] encourage the Inter-Parliamentary Union to continue to contribute to the development of global responses to the crisis".
In his address to the Conference, the IPU Secretary General, Mr. Anders B. Johnsson, highlighted the central elements of parliamentary action in response to the crisis: more oversight of stimulus packages and of financial institutions in general; political support for official development assistance (ODA) as key to helping developing countries overcome the crisis; reform of the Bretton Woods institutions, including more direct accountability to parliaments; and, most critically, a clear focus on employment generation as the real test of economic recovery.
The outcome document echoes many of these concerns. Among other things, it calls for stronger coordination of national responses on a global scale, including more and fairer surveillance by the International Monetary Fund; it sets the stage for further discussions on reforming the current global reserve system and the Bretton Woods institutions; it declares a willingness to carry forward existing commitments on ODA; and it commits governments to "improved transparency, eradication of corruption, and strengthened governance".
Looking to the future, the Conference established an "ad hoc open-ended working group of the General Assembly to follow up on the issues contained in this outcome document, and to submit a report on the progress of its work to the General Assembly before the end of the 64th Session", in September 2010.
With this time-line on the horizon, the world community is invited not to let its guard down and to come together again to address many unresolved issues. For its part, the IPU will work with the United Nations to ensure that the next joint Parliamentary Hearing, which will take place at UN headquarters in November of this year, will be devoted to mobilizing further political support in response to the crisis.
