Globalization of financial services

In the midst of efforts to consolidate financial and banking services in this country, the need for our financial services to be prepared to enter the era of globalization is becoming increasingly urgent. This is all the more true since leaders from the G-7 countries have already been urging that all World Trade Organization member countries come to an agreement on a liberalization of financial services by the end of this year.

The trend toward globalization has become stronger since an accord was reached during the Uruguay Round of talks held in the framework of GATT (1994), which gave birth to the WTO. This trend is being further enforced by the APEC countries, which are striving for the establishment of a free and open trade area in the Asia-Pacific, and by the AFTA countries, which are intent on creating a similar area in the ASEAN region beginning in 2003. Clearly, various developments on the international scene indicate a drift toward the coming into being of an integrated world economy, which includes financial services.

It should be realized that any macro monetary policies can only be effective if they are supported by a healthy and solid banking/financial industry, as well as a safe and efficient payment system. And that isn't all. Globalization also calls for a mental switch on the part of those who must implement those policies in order that a positive synergy may be achieved and good business ethics established as we anticipate the coming into being of a clean government with authority.

-- Bisnis Indonesia, Jakarta