World economic leaders said on Monday that greater transparency in economic decisions and stronger regulations are needed to encourage investors and speed up the slowing global economy.
The leaders participating in the World Economic Forum said that apart from global standards and codes to regulate governments and corporations, an effective system for preventing and resolving future crises is needed.
”The adoption of clear and transparent procedures in economic decisions and willingness to be monitored for them, improves stability,” and engenders investor confidence, said Britain’s Chief Treasury Secretary Paul Boateng.
After the scandals at US big businesses such as Enron and Worldcom, stronger and more consistent regulations must be put in place, Boateng said.
”Investors, quite rightly, avoid countries with a reputation for instability, for opacity and for corruption,” he said. Bank of Canada Governor David Dodge said governments have to eliminate corruption, curb wasteful spending and aim at efficient and tighter fiscal management to raise their attractiveness for investors.
Referring to the crisis of confidence in the corporate system, World Forum President Klaus Schwab said corporate integrity means businesses should not only be governed by rules, but by values.
”The only way to stop the current wave of antibusiness sentiment is for business to take the lead and reposition itself clearly and convincingly by following a new philosophy of society oriented business,” Schwab said. – Sapa-AP