The United Nations is convening a three-day summit of world leaders from 24 – 26, June 2009 at headquarters to assess the worst global economic down turn since the Great Depression. The aim is to identify emergency and long-term responses to mitigate the impact of the crisis, especially on vulnerable populations, and initiate a needed dialogue on the transformation of the international financial architecture, taking into account the needs and concerns of all Member States. Mr. Ron Nechemia , the Chairman of the Board of Directors of the EurOrient Financial Group (“EurOrient”) and a Permanent Representative to the United Nations , will attend the “United Nations Conference at the Highest Level on the World Financial and Economic Crisis and its Economic Impact on Development.” |
This extraordinary General Assembly session was mandated at the Follow-up International Conference on Financing for Development, held in December 2008 in Doha, Qatar. Member States requested the General Assembly President Miguel d’Escoto Brockmann to organize the meeting “at the Highest-level” with the participations of Heads of State and government. As an officially recognized representative of the private sector to the United Nations, Mr. Nechemia, who is recognized as the founding father of private sector development, will be delivering a prepared Policy Statement to the conference. The conference is comprised of plenary sessions and four interactive roundtable exchanges among world leaders and representatives of the United Nations system, including the World Bank and the International Monetary Fund , as well as civil society organizations and the private sector .
Mr. Nechemia’s policy statement will offer his perspective as a global development financier into the issues that fomented the collapse of the world’s financial systems while at the same time offering concrete suggestions concerning efforts to mitigate the problems as they currently exist and recommending solid solutions to improving the world’s badly damaged financial architecture.
In his forthcoming Policy Statement to the United Nations Conference, Mr. Nechemia observes:
“Government bodies, such as but not limited to, the US Securities and Exchange Commission (SEC) and the Federal Reserve Board of Governors in Washington DC, together with the international organization failed to understand the evolution in financial technology, and perhaps were not sure as to which of the government agencies has responsibility for oversight. This lack of oversight coupled with a failure to establish new guidelines that would mitigate risks associated with evolution of contemporary financial technology by imposing stricter safety standards and higher capital requirements in overall terms on the financial institutions in developed financial markets, compared to the previous standards contributed greatly to the present day global financial debacle. Both the scale and persistence of the attendant credit crisis seems to suggest that securitization—together with poor credit origination, inadequate valuation methods, and negligently insufficient regulatory oversight—have severely damaged global financial stability.”
Mr. Nechemia also urges the following:
I stress the importance of the recognition that the markets have become global but our regulatory controls have remained local. A solution will only be found if we take steps to strengthen international financial regulation and supervision. I am calling on harmonizing national with international regulatory policies and legal frameworks to enhance coordinated supervision and resolution of firms and markets that operate across borders I urge that we need to explore the regulatory, supervisory, macroeconomic and financial stability issues raised by these new financial instruments in relationship to their contribution to current financial crisis. I reiterate my resolve to the urgent task before us is to develop processes, mechanisms and policies which can better link humanity to the benefits of globalization. This is the challenge which United Nations must address. “The impact, demands and challenges of this global financial crisis have rightly captured the attention of world leaders,” says Mr. Nechemia whose full policy statement to the 24 – 26, June UN Global Financial Crisis Summit will be published in its entirety 24, June, during the day of the event at the United Nations and will be made available on the company’s website: www.eurorient.org .
Emphasizing the critical importance of this global financial crisis and what it means to the people of the world in lesser developed countries and emerging market economies in particular along with the international financial institutions whose charter it is to play a significant role in socially responsible development, Mr. Nechemia also attended the United Nations Conference on Trade and Development, 27 April 2009. Barely one month ago, this conference agenda stressed and focused on, “Confronting the Challenges of Financing for Development: Coherence, Coordination and Cooperation in the Context of the Implementation of the Monterey Consensus and the Doha Declaration on Financing for Development.”
This United Nations sponsored event was a “Special High-level Meeting of the Economic and Social Council” (“ECOSOC”) with the Bretton Woods Institutions, the World Trade Organization and the United Nations Conference on Trade and Development where Mr. Nechemia delivered a Policy Statement concerning sustainable development in the face of the global financial crisis.
Says Mr. Nechemia: “The effects of the recent financial turmoil continue to reverberate around the world. Years of painstaking efforts -- across the international community -- hang in the balance. Unemployment is rising, food and energy prices are fluctuating, social protection systems are failing and access to credit and financial services is shrinking. All of this is taking a heavy toll on individuals, especially the poorest of the poor.”
An original participant at the convening of the first International Summit on Financing for Development held from 18-22 March 2002 in Monterrey, N.L., Mexico, Mr. Nechemia brings a unique and historical perspective to the world’s dialogue on the Global Financial Crisis and the myriad issues surrounding it. Mr. Nechemia’s attendance along with the solicitation of his ideas at that original conference was extended via a United Nations General Assembly resolution (55/245A and B, respectively,) in which the Assembly decided to convene, at the highest political level, the International Summit on Financing for Development; and, “Accordingly, and in pursuance of paragraph 11 of General Assembly resolution 55/245B, EurOrient Financial Group (“EurOrient”) honorably was invited to participate” represented by Mr. Ron Nechemia in the historical International Summit on Financing for Development on a Ministerial Segment . Mr. Nechemia’s participation aimed to elevate the vision by highlighting how we all need to work together during the years to come, as the international community builds toward the Millennium Development Goals , to create the brilliant tapestry of what sustainable financing for development is in practice.
The Conference on the World Financial and Economic Crisis and its Impact on Development brings to bear the full authority of the General Assembly, the only universal body of sovereign states. It is not a counter-measure or alternative channel to existing international fora on economic cooperation and financial regulations. Rather, it opens up a complementary and supporting process that brings with it the voice, and ultimately the buy-in, of all 192 UN Member States.
“We have an historic opportunity – and a collective responsibility – to bring new stability and sustainability to the international economic financial order,” Assembly President d’Escoto declared recently. “This transformation – which could begin to narrow the North/South divide – requires the involvement of all nations of the world. This is the meeting of the G-192.”
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