Asian economies better than west-MR

25 February 2011 10:13 am

President Mahinda Rajapaksa today said that the root cause of the global economic melt down including the collapse of the banking systems recently was the result of irresponsible financial handling by many of the developed countries in the world.

He told the South East Asian Central Bank Governors’ 46th conference that of double standards, policy contradictions, and the stubbornness to face reality, the unfortunate attempts at politicizing multi-lateral financial organizations and the lethargy in providing urgently needed financial bail-outs, were distinct causes that aggravated the crisis.

President Rajapaksa said historians would record that Asian economies came out of this painful era in better shape when compared with their western counterparts.

The President said a lot of attention has been paid to regulate and supervise financial institutions which are considered to be too big to fail and this is commendable, because the fall of major global financial institutions damages the international financial structure.

“By the same token, it is also necessary for the worldwide financial community to focus upon the management of economies that have a global impact. We know that certain national economies are so large that their financial well-being is vital for the global economic health,” he said.

Cambodian Central Bank Governor Dr. Chea Chanto, IMF Deputy Managing Director Naoyuki Shinohara also addressed the gathering.