Financial chaos threat to world economy: Megawati
Financial chaos threat to world economy: Megawati
SINGAPORE (AP): Financial chaos of developing nations threatens the world economy with contagion, without international trade and investment standards, Indonesian politician Megawati Sukarnoputri said on Monday.
"To prevent a repeat of the Indonesian experience, I feel it is important that the leaders of the world immediately establish global standards and regulations to govern international trade and investment," Megawati said in an address.
She said all international companies and governments should be required to comply with standards on environmental protection, democracy, corporate governance and corruption.
"The international economy will be threatened by a contagion," Megawati told the Institute for Defense and Strategic Studies.
She said, "A contamination of the world economy by the developing nations" would cause "the currency exchange system to undergo constant upheavals." In addition, she said, "extreme changes, social revolution and radicalism, evolved from the prolonged economic crisis will threaten regional geo-political stability."
Megawati, whose father was Indonesia's founding President Soekarno, is a possible candidate for president if her party wins enough votes in the June 7 parliamentary elections.
Answering questions after her speech, she committed her party to transparency in government, a market open to foreign investors, and non-discrimination in administration of the law.
When an Indonesian student noted that her father had not succeeded in bringing democracy to Indonesia and asked if she would, Megawati gave an equivocal answer, as she did with most of the questions during an hour-long session.
"Democracy is a basic right of any human being," she said.
During the Cold War "every country had a different definition of democracy," she said, adding that the institution is "a dynamic state."
Asked about closing failing Indonesian banks, she said, "Restructuring the banking system is really unavoidable."
She predicted her party would win a majority of votes in the elections, but said answering questions about possible coalitions was difficult. She said her party was studying the question and may have an answer in a month.