G20 Told Financial System Is Inadequate to Fix Economy

G20 Told Financial System Is Inadequate to Fix Economy

For Immediate Release Nick Berning, 202-222-0748
Michelle Chan, 415-544-0790


Friends of the Earth says same institutions that caused problems can’t be trusted to solve them, outlines recommendations for systemic change

WASHINGTON, D.C.—With representatives of 20 of the world’s wealthiest nations scheduled to meet here this weekend to discuss the global financial crisis, Friends of the Earth released a series of recommendations to make the world’s financial system more stable, transparent, accountable, and environmentally sustainable.

“This financial crisis is just the latest sign that the global financial system is not working,” said Friends of the Earth-U.S. President Brent Blackwelder. “Now President Bush has called a meeting aimed at propping up that system, when what is needed is fundamental change. We cannot turn to the same actors and institutions that created this mess and expect a different result. We need a new approach.”

Blackwelder pointed to the recommendations released by Friends of the Earth today. The group’s proposals include new regulations on the banking and financial services industry, new tax policies, means of accounting for environmental impacts in financial decision making, increased penalties for bad actors, principles for government bailouts, and means of ensuring that decisions about a new financial system are made in a democratic way.

Friends of the Earth’s recommendations are available here: /financialsystem/FinancialReformProposals.pdf

Friends of the Earth has also worked with allies on a variety of other recommendations:

BankTrack statement “Bank to the Future: El Escorial Statement on Banks and the Financial Crisis,” http://www.banktrack.org/site2008/download/bank_to_the_future/escorial_declaration_final.pdf

Coalition letters: “Statement on the proposed ‘Global Summit’ to Reform the International Financial System” and “New Principles and Rules To Build an Economic System that Works for People and the Planet,” both at: http://www.choike.org/bw2/#english1



Friends of the Earth is the U.S. voice of the world’s largest grassroots environmental network, with member groups in 70 countries. Since 1969, Friends of the Earth has fought to create a more healthy, just world.