Clinton For New Fiscal Architecture

United States President Bill Clinton has called for a new international financial architecture, opposed any move against protectionism and placed conditionalities on access to credit in an economic crisis.

"The international community cannot save any nation unwilling to reform its own economy. To do so would be to pour good money after bad. But when nations are willing to act responsibly and take strong steps, the international community must help them to do so," he said.

On the political front, the president stated that Kosovo could threaten the peace and stability of the Balkans and threatened Nato retaliation against Serbia if they failed to honour the United Nations resolutions.

Delivering the inaugural address at the annual meetings of the International Monetary Fund and the World Bank yesterday, Clinton said, "The world economy today needs more trade and more activity of all kinds, not less. That is why when the leaders of Apec meet next month, we must press forward to tear down barriers and liberalise trade among our countries."

Terming it as the most serious financial crisis in 50-years, Clinton called for decisive action. "The gains of global economic exchange have been real and dramatic. But when tides of capital first flood emerging markets, then suddenly withdraw, when bank failures and bankruptcies grip entire economies...it is time for decisive action," he said.

In this context he said that the Bretton Woods institutions should be further equipped. "The IMF and the World Bank have been vital to the prosperity of the world for the past half century. We must keep them vital to the prosperity of the world for the next half century. Therefore, we must modernise and reform the international financial system to make it ready for the 21st century," he said.