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Old 24-05-2011, 12:12 AM   #1
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Exclamation 2008 global financial crisis may be just the start

2008 global financial crisis may be just the start, warns Brown

Published Date: 17 May 2011
By Staff Reporter
THE global financial collapse of 2008 may be just the "trailer" to a series of devastating international crises, former prime minister Gordon Brown has warned.
Writing in the American magazine Newsweek, he said that three years on, the world financial system remained "perilously unregulated".

Mr Brown called on world leaders to come together and draw up a new series of binding agreements to deal with theADVERTISEMENT


"If the world continues on its current path, the historians of the future will say that the great financial collapse of three years ago was simply the trailer for a succession of avoidable crises that eroded popular consent for globalisation itself," he said.

"The global flows of goods, services, and capital create global problems that can be answered only by global solutions and by a consensus between world leaders to reach binding agreements for the good of all nations."

Mr Brown also stressed the need for western countries to prepare their populations for the impact of the economic rise of Asia if they did not want to see millions thrown into unemployment and poverty.

"Re-equipping western workforces for the opportunities presented by Asia will be the pre-eminent challenge of this decade - and neglecting investment in our human capital base will condemn millions of people in the West to long-term unemployment and poverty."

At the same time, he stressed the need for "global support" for the unemployed of the Middle East and Africa, if they want to avoid creating fresh problems of immigration and insecurity.

"Global growth will be far lower than it otherwise needs to be, unless the world begins to understand that there is no solution to financial instability, diminished trade and mass unemployment without a global deal for jobs and justice," he said.

It emerged last month that the former prime minister is to take on an advisory role at the World Economic Forum.

Mr Brown will take up the unpaid role chairing a board made up of the heads of international organisations and government representatives.

There had been speculation he could become the next head of the International Monetary Fund. This would have seen him succeeding Dominique Strauss Kahn, currently at the centre of sexual assault allegations in the US, as head of the organisation.

But Tory leader David Cameron argued Mr Brown may not be the "best person" to head the global finance watchdog, because of his role in allowing the UK's national debt and deficit to accumulate.

Mr Brown, who is still the MP for Kirkcaldy and Cowdenbeath, was chancellor for ten years before becoming prime minister in 2007.

He warned in a speech to Scottish business leaders last month that the "world has been too ready to unlearn the lessons of the financial crisis and there is a danger that we are sowing the seeds of the next financial crash".
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