AlJazeera: Rectifying the Discordant Role of the International Financial System in the Global Security Architecture – Time to Unleash a Global “Financial Mega-Market”?

Mirtchev, A. (2009, June 2). Rectifying the Discordant Role of the International Financial System in the Global Security Architecture – Time to Unleash a Global “Financial Mega-Market”?. Al Jazeera.

Al Jazeera05 Riz Khan Alexander Mirtchev Global CrisisThe President of Krull Corp. Dr. Alexander Mirtchev believes that the initiatives espoused to reform the global financial markets and reshape regulations ultimately represent an attempt to “put the genie back in the bottle”. To an extent, the regulatory drive is reminiscent of an effort to bring the global financial system back to its pre-crisis status, rather than reform it. Strengthened market regulation and a newly empowered IMF could address certain immediate economic security threats and concerns, as well as pre-empt some upcoming financial market upheavals. On the other hand, the strategies reflected in more stringent regulatory regimes could also have wider repercussions on broader economic security, including impede financial innovation, create opportunities for “regulatory arbitrage” and stifle the eventual emergence of a new global financial system. The reform process also has to contend with the residue of decades of misdirected policies, over-leveraging and major economic imbalances. It could prove more beneficial for the global economy to consider supporting the emergence and the “unleashing” of a “global financial mega-market”.  This innovative development would utilize the technologies and infrastructure that are already in place; empower and educate both sophisticated market players and individual consumers; and incentivize rather than restrict business activity, all the while establishing clear, consistent and transparent rules of the game.