It would be difficult to find a newspaper these days that has not published a recent front-page story about market upheavals, countless business fold-ups, sky-rocketing unemployment and mounting social tensions, all of which accompany the unfolding economic crisis. As economies are still quivering from the shock waves of the global financial tsunami, the crisis continues to spill over into the real economy, and has already developed its own momentum. Political alarm bells are ringing in parliaments all over the world.
The decision taken by the IPU to convene a Parliamentary Conference on the Global Economic Crisis in Geneva on 7 and 8 May 2009 therefore came at an opportune moment. Not only was the subject acutely topical, but its timing was perfectly synchronized with the process of reflection on the causes and consequences of the crisis, undertaken separately by the United Nations and the G20 Summit in London.
The Conference was prepared in an exceptionally short time due to the urgent nature of the situation. Nevertheless, it was attended by close to 400 participants and observers, including 210 parliamentarians from nearly 80 countries. The meeting brought together a very diverse group of legislators from parliamentary committees dealing with financial, banking, economic, social and development issues.
Its programme comprised a series of interactive panels, thematic debates and keynote presentations, all of which provided a wealth of information on the origins of the crisis and on lessons to be learned from it. It was an insightful event, an opportunity to ask direct questions and receive direct answers from some of the leading experts. Interplay of ideas was palpable in the room.
Some of the world's most knowledgeable economists accepted the IPU’s invitation to meet with parliamentarians who are working hands-on to mitigate the consequences of the crisis. They were joined by heads of leading UN agencies, renowned international experts, and even a former Prime Minister of Iceland - one of the countries worst hit by the crisis.
As pointed out in the concluding remarks of the IPU President, Dr. Theo-Ben Gurirab, the current crisis also represents an opportunity; an opportunity to achieve real progress in society, remedy existing inequalities and imbalances, and build new systems based on inclusion, transparency and good governance. The best support parliaments can lend to this process is ensuring stringent oversight of government policies. As the reforms proceed - and they will take years to accomplish - people will depend on legislators to make sure that their views and aspirations are fully taken into account and that government and public institutions perform to the highest standards.
The IPU is determined to pursue its work in this direction. As the world organization of national parliaments, it is keen to follow up on the debate that took place in Geneva, making effective parliamentary oversight one of the pillars of the much-needed reform of the ailing international financial system. More and better governance of the financial sector is required also at the national level, with the State playing a more assertive role. As one parliamentary delegate said during the Conference, we need to reinforce the institutional control of greed. Parliaments have a major part to play in ensuring that that happens.
