Brazilian President Luiz Inacio Lula da Silva on Wednesday called for tougher regulations on the international financial system in case of a new crisis.
Lula, addressing the opening ceremony of the World Economic Forum on Latin America in Rio, blamed speculators for the global economic turmoil, saying a political solution is needed to tackle the crisis.
Lula defended the creation of a new world economic and social order, where the state has a fundamental role, along with the private sector and the civil society.
"Considering the state as worthless was the 20th century's fashion," he said. "When the creators of this theory see their corns hurting, who can save them? Precisely the state."
It is necessary to aid banks and insurance companies in order to protect the poorest, he said.
"The nationalization of banks should not be ruled out because of mere ideological prejudices," he added.
The president also advocated to end tax havens and underlined the importance of not recurring to protectionist measures amid the crisis.
He urged the resumption of the Doha Round negotiations, which were suspended last year.
In addition, the president said emerging countries should be involved in efforts to ride out the crisis.
The first step, he said, was made during the latest G20 summit, when the largest economies in the world decided to review the distribution of shares and votes in the International Monetary Fund (IMF) and in the World Bank.
"We did not create the problem, but we are part of the solution," he said.
Emerging countries are willing to help, he added.
Brazil has announced that it can contribute to the IMF with as much as 4.5 billion U.S. dollars. Other developing countries have also expressed the same intent, Lula said.
Lula was optimistic about the impact brought by the crisis on the Brazilian economy, expressing confidence that his country will overcome the crisis ahead of others.
The crisis is a challenge to both Brazil and Latin America, butthe region has "an extraordinary potential" to deal with it, he said.
Over 500 business and political leaders from 37 countries are in Rio to attend the Forum on Latin America, which runs from Tuesday to Thursday.
Several discussions were held concerning the ongoing economic crisis to address regional economic recovery linked with sustainable development.
Source: Xinhua
|
Comment
Tell A Friend
Print Format
Save Article