Associate Director and Distinguished Fellow, The Centre for International Governance Innovation
Professor, Department of Political Science, University of Waterloo
TRANSCRIPT: Financial crisis has brought a huge amount of bad things but there are some areas of optimism. I think the optimism is the ability of governments to meet together, the idea of coordination of harmonization is quite striking post crisis but also to bring deliverables to the table. One of aspects of the crisis that can’t be overlooked is the international financial institutions coming back. When we look at the IMF, two years ago the IMF seemed to be down and out, nobody was borrowing most of the money of the IMF was going to one or two countries. Sometimes they called it the IMF for Turkey. Now the IMF has retooled and they have been given a huge amount of new resources for the summit process and this of course allows them to be far more generous in terms of delivery funds. There is going to be some sort of crisis situations. This is far different from the end of the 90s where it was all Asia countries going through a crisis at that time it was Korea it was Thailand it was Malaysia it was Indonesia. These were the countries that really were going through crisis it terms of their currency, in terms of their monetary situation. Now it’s a mix of countries, you are seeing it from Iceland to Hungary to the Baltic countries, we may have other problems in other countries. What is good is that there is a reserve from the IMF that is able to deliver on this and the World Bank in the same way. I mean you see it today in terms of the Haiti question. The World Bank had money available to deliver in a day after the Haitian crisis to be able to alleviate some of that situation. Again, those international institutions, certainly as Canadians we put a lot of attention on over the past 30 to 40 years are in a situation where they can deliver the goods and come to terms with not only the rich countries problems but many of the problems in the poor countries as well.