Individual effort, collective will

The economic crises gripping the world may be global but the solutions are local. While almost every nation in the world has been hit by the collapse of the global credit markets, the damage done to each country is different and calls for corrective measures that suit the case best. This was one of the insights raised by economists and business leaders at the Dubai International Finance Centre Week, held this week.

In the United States the credit crunch is the result of over-indebted home-owners no longer being able to pay their loans. In the Gulf, confidence in the local property and finance markets has been shaken by the rapid drop in the oil price, among other factors.

So, we welcome the formation of a new federal government committee, set up to try and revive the financial and banking sector in the UAE. By firmly tackling the impact of the crises on the UAE, the government can restore local and international investor confidence in the country.

And, as countries deal with the fallout from the crises, multilateral institutions, like the IMF and the World Bank, must start strengthening the international financial regulatory system to ensure that a repeat of the mayhem is avoided. This is the best way the global economy can be protected, through international cooperation.