§ Mr. Alan SimpsonTo ask the Chancellor of the Exchequer what proposals he has taken to the World Bank, as a member of its board, to provide protection for developing countries from financial speculators. [62768]
§ Ms Hewitt[holding answer 16 December 1998]: As Chairman of the G7 Finance Ministers, the Chancellor of the Exchequer announced on 30 October 1998 a far-reaching programme of reforms to strengthen the international financial system. On behalf of the G7, the Chancellor called on the World Bank, IMF and other international institutions to take forward work quickly on implementing these reforms, including the development by the World Bank of a code of general principles of good practice on social policy to ensure that governments have in place policies to tackle the social impact of sudden shocks to the financial system. In addition, the UK and other G7 countries committed themselves to strengthening in their own countries the regulatory focus on risk management in financial organisations, including in particular the implications arising from the operation of hedge funds and other highly leveraged financial organisations.
These reforms agreed by the G7 are designed to modernise the financial system to enable us to meet the challenges of today's global economy, minimise the risks of disruption, and maximise the benefits of globalisation to deliver greater opportunity and prosperity for all. The Chancellor recently met James Wolfensohn, President of the World Bank, and Michel Camdessus, Managing Director of the IMF, to discuss the implementation of these reforms and will continue to work closely with them on these issues.