Centre de recherche et de promotion pour le sauvegarde des sites et monuments

Theme 1: Financial regulation

Unfortunately as in the past, humanity has always needed to go through "disasters" to understand or learn to make decisions.

As an example, the Nations Society became the United Nations was created after a devastating world war with the goal of maintaining world peace. What it has more or less successful so far.

According to Adam Smith, the capital is created by the accumulation of the savings available. While today, more than half of this, is speculations based on creating a strong instability. Despite the crisis of 29, no system of international protection has been established. The current financial crisis is due to a lack of regulation at the international level.

Recall that world food crisis is not caused by a lack of food but by the game of speculation in the stock market in Chicago.

The global financial system is outside any international control. Each State is responsible for creating its own system. The limits of such protection have been made bare by the case of Madoff.

A control structure has not needed to be created because the markets are supposed to regulate itself.

This is not to establish a system of regulation specific to developed countries. The reform must be deep and involving the developing countries in decision-making process. According to us, the present system is any way in advantage for poor countries. Yet most of the emerging markets are in these countries.

Two issues can be explored:
 the first is by way of member states, to empower the UN to be given a power to control the international financial system. The UN structure that need to be reformed, has some recognition at the international (192 countries).

 The second is to establish a credible and effective institution which develops an absolute power of control. It will monitor the central banks which in turn control the national banks which have a power monitoring and control of domestic financial markets. The credit control is a crucial point. The expansion of the latter is a source of instability.