Dr. R. Seetharaman, Group CEO, Doha Bank, the leading private commercial bank in Qatar, has received a PhD in “Global Governance” from European University recently. Dr. Seetharaman received the doctorate at a convocation event held in Geneva –Switzerland recently. The function was attended by Mr. Adolf Ogi, former president of Switzerland and senior management staff and students from European University.
Speaking at the event, Dr. Seetharaman explained the concept of Global Governance. “The lessons learned from the initial wave of crisis should effectively be used to reduce the impact on the global economy. And this is exactly where a firm global governance framework will come to work. If a transparent and foolproof governance system is in place it can prevent another crisis. The world has got manipulated, and liquidity is mainly driving the markets. Currencies and interest rates have witnessed significant volatility.”
“My idea for Global Governance is strategic control of economies and corporations in the most effective way through Governance. It can be called corporate governance for institutions, and global governance for economies. Individuals are also affected by corporate governance and global governance due to the links with institutions and economies, respectively,” he said.
Dr. Seetharaman gave insight on various reforms undertaken by Global Governance. He said “After the crisis, global regulatory reforms have been actively reviewed under the leadership of G20 countries and in co-ordination with the financial stability Board (FSB), International Monetary Fund (IMF), and the Bank for International settlements (BIS).The Dodd–Frank Wall Street Reform and Consumer Protection Act in US implemented the regulatory reforms in response to the crisis. A consumer protection agency was formed under this act as it attained significant importance. The Volcker’s Rule was enacted under this regulation to restrict proprietary trading. The SEC also proposed tougher disclosure rules for Hedge fund and private equity firms. FSB, IMF and BIS are working on macro-prudential policy frameworks, including tools to mitigate the impact of excessive capital flows. Basel 3 implementation is underway. G20 has also encouraged the efforts made by the Global Partnership for Financial Inclusion (GPFI) in implementing the Financial Inclusion Action Plan. The GPFI is expected to expand the G20 Basic Set of Financial Inclusion Indicators to cover innovative approaches, quality of products, financial literacy and consumer protection. The tax havens should also be regulated. The major financial reforms which are currently in progress are Build resilient financial institutions, End too-big-to-fail, Address shadow banking risks and Make derivatives markets safer. The current realignment of the global architecture will support the achievement of one of the eight UN Millennium development goals “to develop a global partnership for development,” which aims to further develop an open, rule-based, predictable, non-discriminatory trading and financial system. This would include a commitment to good governance, development, and poverty reduction, both nationally and internationally. Economies, institutions and individuals need to follow governance. “
In his conclusion, he said, “The Global Financial crisis is an opportunity for real economies to prosper, and financial economies to correct their values to become real and more ethical so that the world becomes a better place. Economies need to integrate the principles of sustainable development into their policies and programs. Moral and ethical governance is the key for sustainability and strengthening of Global and Corporate Governance will promote sustainability. Sustainability is the key for long-term growth. On account of the crisis emerging economies have realized their strengths, and advanced economies have come under regulatory re-alignment. This crisis is an opportunity to create a better world, based on sound transparent principles and ethics.”