The Bankwatch

Tracking the consumer evolution of financial services

Dr. Inge Kaul on effective global resource allocation

To wind up, a smart and interesting speaker on a panel moderated by Chrystia Freeland.  Dr. Inge Kaul Member, Committee of Experts, Leading Group on Innovative Financing for Development; Professor, Hertie School of Governance, Berlin, Germany

Notes on her talk.

State failures have made it very easy for markets to fail.  She speaks about public goods and how everyone wants everything, but no-one wants to pay.  Free-riding, and this applies to countries as well.  This helps us to understand why G20 talks but accomplishes little.

Leaders should set agenda – we need a Gxx for each global challenge, eg climate change.  Ministerial level G’s for each global issue.

It is not acceptable to through garbage over the neighbours fence.  Pollution is no different.

We need urgently a new global public finance theory.  Tax, movement of money, stimulus, consolidation.  There is no understood common framework to understand how to make those decisions.

Free-riding hurts money for public development.

Written by Colin Henderson

June 23, 2010 at 15:29

Posted in Uncategorized

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