Grenada wants reform of global financial system

Grenada’s Prime Minister Tillman Thomas said while the world has changed “drastically over the years”, the old financial rules have remained, thereby placing the developing countries at a disadvantage. (File photo)

NEW YORK, United States, June 25, 2009 – Grenada’s Prime Minister Tillman Thomas has called for the restructuring of international financial institutions, improved regulation and better governance, to deal with the challenges of the new global environment.

Addressing reporters ahead of the United Nations Conference on the impact of the global crisis on developing countries in New York, Tuesday, the Grenadian leader said he wants to see “certain measures” taken at the UN to minimize the impact of the crisis on small states.

“I believe the time has come for the UN to embark upon reform…there is a need for restructuring the global financial system. We need a new financial architecture with a stronger regulatory framework to ensure what happened several months ago does not happen again,” Prime Minister Thomas said.

He said the UN had a role in ensuring changes to the World Bank, International Monetary Fund (IMF) and other International finance institutions, in order to meet the needs of “our current societies”.

The Prime Minister said while the world has changed “drastically over the years”, the old financial rules have remained, thereby placing the developing countries at a disadvantage.

“Therefore reform is the way forward, in trying to meet the needs, especially for developing countries and we expect the developed countries to support the measures that would make life more comfortable for us,” he declared.

The Grenadian leader pointed to a 0.5 per cent contraction in his country’s economy in 2009, compared to four per cent growth last year, a 25 per cent reduction in earnings from the port; government’s main source of income, a 15 to 20 per cent decrease in tourism coupled with a halt to a number of major tourism projects and a 10 to 15 per cent decline in visitor arrivals, as evidence of the “adverse impact” of the global financial crisis on the island’s economy.

He also named the continued growth in unemployment and a projected decline in remittances among indicators of the impact of the crisis.