• by Pascal Lamy
• Tuesday, March 17, 2009
• Inter Press Service

It is too early to judge whether we are at the bottom of the recession or whether this is just the beginning. But one thing is clear: the depth and scope of the crisis will be a function of the capacity of individual countries to act together at the global level and re-inject confidence in our economic and social systems, writes Pascal Lamy, Director-General of the World Trade Organisation (WTO).

But where will the confidence come from?

It should come from the belief that the financial system has been repaired and is back in operation. This requires focusing on cleaning banks' balance sheets and is a matter of urgency even if resisted by bank shareholders. Unless this happens, there is no turning point in sight.

It should come from the belief that a serious attempt is being made to fill the hole in the international regulation of finance in order to avoid future accidents of this type.

(*) Pascal Lamy is Director-General of the World Trade Organisation (WTO).

//NOT FOR PUBLICATION IN CANADA, NEW ZEALAND, CZECH REPUBLIC, IRELAND, POLAND, THE UNITED STATES, AND THE UNITED KINGDOM//

© Inter Press Service (2009) — All Rights Reserved. Original source: Inter Press Service

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