R Seetharaman, centre, receiving his doctorate degree at the European University.
Doha Bank chief executive officer Dr R Seetharaman has received a doctor’s degree in ‘global governance’ from the European University during a convocation held at the university’s campus on June 25.
The convocation was graced by former Switzerland president Adolf Ogi, senior management staff, and students of European University at an event held at the Hotel President Wilson, Geneva.
During the function, Seetharaman delivered his concept on ‘global governance’ and said: “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.”
He noted that 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.”
Also, Seetharaman said 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.
Seetharaman’s concept was also underlined by insights 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 the US implemented the regulatory reforms in response to the crisis, he continued.
He pointed out that 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.
According to Seetharaman, 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.
The 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, Seetharaman said.
He also suggested that tax havens should also be regulated: “The major financial reforms which are currently in progress are to 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,” he noted.
This would include a commitment to good governance, development, and poverty reduction, both nationally and internationally. Economies, institutions, and individuals need to follow governance, he emphasised.
