To be in sync with the emerging global order, governments should adopt a policy of transparency, an official representing the World Trade Organisation (WTO) said today.
"If you are not transparent you would lose out, appearing closed and inaccessible, creating public outrage," said WTO director-general designate, Dr Supachai Panitchpakdi.
He was speaking to reporters after delivering a speech at the Asian Leadership Forum organised by Business Week , at the Putra World Trade Centre (PWTC) in Kuala Lumpur.
Supachai was Thailand's deputy finance minister from 1986 to1988 and deputy prime minister from 1992 to1995.
Asked to comment on the effects of globalisation, he said the process is inevitable and proposed that a form of global governance be imposed.
"Globalisation is a trend that cannot be stopped and governments would have to be prepared for it. We would also need some form of global governance to anchor ourselves,' he said.
Earlier, during a panel discussion attended by 200 people, the Asia regional editor of Business Week , Mark Clifford said for financial reform to take place several factors must be met.
"Governments would have to open the political system. Public consensus is needed and authoritarianism cannot work forever. Pluralism goes hand in hand with growth," Clifford said.
He also stressed the need for strong judicial systems, a free press that provides a "strong disinfectant against corruption" and pluralism in political parties with the attitude that opposition parties are not disloyal.
On the subject of capital controls, he stated that these controls could provide breathing space but only if used judiciously.
"They can provide some relief but if the controls are not accompanied by reforms, then they would be of no use," he said.
Malaysia adopted capital controls and pegged the ringgit to the US dollar after facing severe economic turbulence in 1998. What was referred to as the Asian Contagion began with the devaluation of the Thai baht which later affected the currencies of its Asian neighbours.
Domino effect
In delivering the keynote address, former British prime minister John Major warned of the dangers of not paying serious heed to the effects of globalisation.
"Many politicians talk glibly of globalisation, but they have yet to realise the full extent of it. Short-term answers do not provide good solution," he said.
"The old style of government is now out of date as global changes take effect and many policies have arisen. Some say that policy is the product of a sound bite providing simple solutions but simplicity is dangerous and sound bites are frauds," said Major.
He added that in today's globalised world, political upheavals could have a domino effect on other countries.
"Political events can effect the rest of the the world, creating a mushroom effect. Sometimes these changes that occur might even have permanent effects," he added.
He also took a jibe at the present Labour administration under Tony Blair, stating that his successes in the past had helped Blair gain control of the country.
"His victory in the last elections was due to my successful economic policies," he said in jest.
The forum which began today ends on Friday.
