Experts call for leadership on global finance reform

Dubai: Finance experts at the World Economic Forum in Dubai on Saturday called for strong leadership on finance reform and said that a G20 summit in Washington on the global financial crisis will provide fresh impetus for reshaping the global financial structure.

"Governments must, in no sense, lift their guards at this point," said Howard Davies, Director of London School of Economics and Political Science in the UK and a former Chairman of the UK's Financial Services Authority.

Davies called for accountability in the international financial system, saying "there isn't anybody clearly in charge."

"The forthcoming summit should identify the directions for change," he said. "Governments must also be careful not to overreact."

He said that major emerging economies should have a stronger voice in the discussions over reform.

Leaders assembled at the World Economic Forum are calling to join global collaborative efforts to come up with ideas and recommendations to combat the financial crisis.

The global financial crisis continues to unravel, with a recession imminent in the US and Europe, that is expected to slow the emerging economies, including those in the Middle East.

The crisis, however, offers a critical chance for the world to restructure the international financial system, another expert said.

"Problems are the parents of solutions," said Suzanne Nora Johnson, a Trustee of the Carnegie Institution of Washington. "This gives us great opportunities to find solutions and new ways of looking at the world," Johnson said.