How I'd Save The World... Again
By Robert Rubin
In mid-2007, the United States began experiencing what turned out to be its worst financial and economic crisis since the 1930s. In short order, economies and financial markets around the world were severely affected. Vast numbers of workers and families were badly hurt and continue to be seriously affected. Many analysts think, as I do, that the recovery could be long and slow, with stubbornly high levels of unemployment persisting—even if we have two or three stronger quarters first. All of this has raised serious questions about the best way for long-term economic policy to promote growth, widespread participation in that growth, and personal economic security.
In the six decades since the end of the Second World War, there has been a broad movement around the world toward a model of market-based economics, public investment, and global integration. With that move came enormous economic progress in industrial countries, including the recovery of war-torn Europe and Japan and, as time went on, in various developing countries. South Korea's GDP per capita grew from roughly $350 50 years ago to close to $20,000 today. In 1960, Singapore was a small fishing village with an average per capita GDP of $427; today it is $38,000. Since China began market-oriented economic reform in 1978, its GDP per capita has risen from roughly $400 to $3,000, with hundreds of millions of people moving out of poverty. India began economic reform in 1991 and, on average, has grown in excess of 6 percent per year since, and has also lifted hundreds of millions of people from poverty. And there are many more examples, especially in Asia.
But despite this history, in the wake of the financial crisis, there are many policy issues that need to be examined. The question of which economic model works best was recently subjected to rigorous analysis by a task force called the Commission on Growth and Development, established by the World Bank and other sponsors in April 2006. The commission was chaired by the Nobel Laureate economist Michael Spence and included Trevor Manuel, then South Africa's finance minister; Gov. Zhou Xiaochuan of the People's Bank of China; Montek Ahluwalia, the deputy chairman of India's planning commission and a key economic adviser to Prime Minister Manmohan Singh; and others, including myself. In May 2008, the commission completed its study of developing countries that had grown 7 percent or more over an extended period (and then reaffirmed its fundamental findings in October 2009, with discussion of adjustments for the crisis). While the specifics differed from country to country, the commission concluded that these highly successful economies shared a set of common characteristics: sustained movement toward market-based economics; governments that effectively provided sound fiscal and monetary policy, substantial public investment, and increasing integration with the global economy; high savings and investment rates; political stability and the rule of law; and considerable focus on widening the distribution of income. The commission also found that no economy anywhere in the world had been successful with largely state-directed activities and high walls against global integration.
http://www.newsweek.com/id/225623Bob we are still hurting from the last time you "saved the world" with your Economic Adviser and Treasury Secretary gig where you advocated no meaningful derivative regulation, hampered any attempt and led the fight for NAFTA and the repeal of Glass Steagal.
Do us all a favor and stick to your shitty group board responsibilities.
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