Federal Ministers Gabriel and Müller with moderator Tanja Samrotzki.

Forum for the Future: „Global financial order in the 21st century“

October 25, 2016 | Forum for the Future | BMZ, Berlin, Germany

At the kick-off to a new event series at the Federal Ministry for Economic Cooperation and Development (BMZ) in Berlin on October 25, 2016, Federal Minister of Economic Cooperation and Development Dr Gerd Müller named fair globalisation as one of humanity’s overriding goals in the 21st century. Organised by the GIZ’s Development Policy Forum, the event series will highlight the need for increased concerted cooperation across departmental lines inside the German government to generate effective, targeted solutions.

Federal Minister Müller said ensuring that globalisation was fair was pressing in light of the world’s rapidly growing population. The African continent in particular, he noted, was facing a range of huge challenges with food security topping the list. Müller emphasised the necessity of increasing global food production by 50 percent by 2030.

Minister Müller pointed to shaping framework conditions as one of the ways the governments could push for fair globalisation, and underscored the need to regulate international financial markets. He called for limits to be set for these markets, since developing countries suffered the most from volatile capital flow.

Looking back at the most recent annual meetings of the IWF and World Bank, Federal Minister for Finance Dr Wolfgang Schäuble asserted that developing countries had to be the focus of increased efforts in the aftermath of the global financial crisis. Their national economies were often not strong enough to provide safeguards against the effects of the crisis he added, which ran the risk of developing countries themselves endangering the global economy.

Schäuble said the dynamics of the financial markets worked against the goal of a fair global financial order. He saw closer cooperation between international financial institutions like the World Bank and the IWF as a very welcome step that would shorten reaction time to crises.

Minister Schäuble pointed to strengthening the resilience of national economies in developing countries as one important goal of the German G20 presidency, and emphasized investment partnerships with Africa (“Compact with Africa”) as another focus. He said that intensifying cooperation with development banks was key, adding, “it cannot be done without them”. Additionally, developing countries needed to enforce an appropriate tax quota, without which the state could not fulfil its responsibilities, the minister said.

Schäuble joined Minister Müller in calling for a financial transaction tax, saying, “there is no reason not to tax them.” It would, however, need to be implemented across the board, he cautioned, and had met with resistance within the European Monetary Union as well.

Impressions of the event

Photo: Federal Ministers Dr Wolfgang Schäuble and Dr Gerd Müller in conversation. Photo: GIZ

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