In his efforts to curtail the impact of the global financial crisis on the continent, the governor of? the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi,? has launched the? ‘Cross Border Initiative’ and called for greater cooperation among central banks in developing countries to? strategise and? enhance? regulatory functions? to meet the challenges of? the financial and economic crises on the continent.
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At the 2011 Annual World Bank/IMF meetings holding in Washington D.C., the governor hosted a high-profile roundtable for African central bank governors, aimed at sharing views and experiences relating to the challenges of the ongoing global financial/economic crises and the repercussions on their respective countries and the continent as a whole.
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According to a statement issued by CBN yesterday in Abuja, the event, which was hosted in association with the Commonwealth Business Council, received strong endorsements from many African central bank governors in attendance as well as policymakers from Africa and Europe.
Echoing the sentiments of many other speakers, thegovernor of the Central Bank
of Mauritius, Rundheersing Bheenick, commended Sanusi for the initiative and recommended that it should become a regular agenda at the Annual World Bank/IMF meetings where Africa-specific issues will be discussed.
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Bheenick stated that stronger cross border cooperation in Africa was crucial, particularly in developing solutions to the difficulties facing the financial sectors, arising from the linkages and systemic risks within the global crisis. ?
Such a forum, he said,“provides valuable access to shared experiences in solving the problems of a small regulator grappling with big issues in a small far away country.”
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As more and more African countries are discovering oil, African economies are becoming more interlinked. Factors such as oil price movements would have similar impact across different countries, hence the need for thinking beyond national borders.
Meanwhile, while the world economy may not exactly be in tatters like it was three years ago during the economic downturn, it may not be far from a severe crisis, the International Monetary Fund declared yesterday.
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The Managing Director, International Monetary Fund, Ms. Christine Lagarde, said this yesterday in her opening address at the ongoing Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund in Washington D.C, United States.
The three-day meetings which? take place annually, bring together central banks chiefs, finance ministers, bank? and other private sector big players and academics to discuss issues of global concern, including world economic outlook, poverty eradication, and aid effectiveness.
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According to Lagarde, though the emerging economies seem to be doing better than their developed counterparts, they will not be insulated from the devastating effects of wrong economic decisions taken by the North, adding that the global economy has reached a ‘dangerous new phase.’ ?
She said, “There is a recovery, but it is weak and uneven. And risks have increased sharply. They are propelled by a negative feedback loop-between weak growth; weak balance sheets among sovereigns, banks and households; and inefficient political commitment. This has led to a crisis of confidence. And it imposes not only economic , but also social costs.
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Yes, the emerging-market and low-income countries are doing better, harvesting the fruits of sound policy choices. But make no mistake: the global south is not immune to missteps in the global north.”
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Even as she noted that inclusive, job-creating, growth must remain the goal, she lamented that countries risked losing the battle for growth, especially with dark clouds over Europe and huge uncertainty in the United States.
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The IMF boss insisted that the primary burden of responsibility for addressing the current crisis lay with the advanced countries.
““I see three policy imperatives for them-fiscal and monetary, financial, and structural,” she stated.
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Largade, however, added that the low-income countries must play a role too.? According to her, they will doing this by rebuilding the policy buffers that served them well during the crisis, and to invest in growth and employment creation.
“The international community must help these communities help themselves,” she said.
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