OBAMAS FIRST PRESS CONFERENCE

Sarkozy's pet project takes a step toward reality as diplomats finesse Israeli-Arab disputeBy COLLEEN BARRY | Associated Press Writer 5:51 PM EST, November 4, 2008

MARSEILLE, France (AP) Countries bordering the Mediterranean edged closer to establishing their Euro-Med Union on Tuesday by finessing an Israeli-Arab dispute over the role of the Arab League.The union — a pet project of French President Nicolas Sarkozy that is more ambitious in symbolism than content — is envisaged primarily as a forum for cooperation and dialogue. Unlike the similarly named European Union, the 43 countries from Europe, the Middle East and North Africa probably will not have open borders, common regulations or truly interlocked economies.Still, the group is important to the participants as a bridge between Europe and its poorer neighbors.French Foreign Minister Bernard Kouchner, the host, declared the two-day meeting a success even though thorny issues, like the naming of a secretary-general, remained unresolved.People said this wasn't going to be a success. It has been, Kouchner said.Under the agreement, the 22-member Arab league will participate in the new union as an observer but will not have voting rights, a condition sought by Israel. Israel and the Palestinian Authority will each hold deputy secretary general posts, giving them a stake in the success of the venture.

For a Europe that fears unchecked immigration from Africa and hostility from the Muslim world, the new organization is an important outreach program. And for some Europeans, by including Israelis and Palestinians — which both border the Mediterranean — it also offers a forum for European diplomacy.Sarkozy, the founding force behind the organization, and his Egyptian counterpart, Hosni Mubarak, will decide on the secretary-general and the allocation of five to six deputy posts before the end of the year, Kouchner said.The expanded union is expected to focus on mostly development-oriented projects, such as cleaning up the Mediterranean, creating new maritime and land highways and solar energy.Kouchner's comments reflected the sense of diplomatic breakthrough, however modest and unrelated to the grander territorial disputes still unresolved.The Israelis finally accepted the presence of the Arab League, Kouchner said. Israel will be accepted as deputy secretary-general of an international organization for the first time in history.9Barcelona was chosen as the headquarters of the fledgling union over Tunisia and the Mediterranean island nation of Malta.France and Egypt will continue as co-chairs of the union for its first two years, with the Czech Republic joining during its six-month EU presidency beginning in January.

Euro-Med Foreign Ministers decided 2009 work programme and cooperation fields Wednesday, 05 November 2008

The institutional structures of the Barcelona Process: Union for the Mediterranean, its work programme for 2009, the fields of cooperation to be pursued in 2009 and the state of progress in the implementation of projects listed in the Annex to the Paris Declaration, are the four issues addressed in the 28-page Final Declaration adopted by the Euro-Med Foreign Ministers at their meeting in Marseilles.The Ministers propose that as from the Marseille meeting (3-4 November) the Barcelona Process: Union for the Mediterranean should be called Union for the Mediterranean and decided that the League of Arab States shall participate in all meetings at all levels contributing positively to the objectives of the process, namely the achievement of peace, prosperity and stability in the Mediterranean region.On the structure of the Union for the Mediterranean, one of the decisions taken is that the co-presidency shall apply to summits and meetings and that one of the co-presidents will be from the EU and the other from the Mediterranean partner countries. The seat of its Secretariat will be in Barcelona.The Ministers propose an indicative list of ministerial meetings for 2009, including four that would be held for the first time, on Sustainable Development Projects, Food Security, Agriculture and Rural Development, Justice, Liberty and Security and Human Development.The fields of cooperation to be pursued are: political and security dialogue, maritime safety, economic and financial partnership (energy, transport, environment, information society, tourism), and social, human and cultural cooperation. The Ministers decided the actions to be taken towards the goal of establishing a Euro-Mediterranean Free Trade Area. They also refer to the important role of reliable statistics as an important factor in decision making and note the statistical services in the partner countries are receiving technical assistance from the regional MEDSTAT II programme, that will run until September 2009.Mention is also made to the role of other regional programmes funded under the priority fields of cooperation, such as Euro-Med Justice II and Euro-Med Police II.On strengthening the role of women in society, they decided that in order to prepare for the coming Ministerial Conference two working groups should be organized during 2009, while on youth cooperation they say the Euro Med Youth IV Programme will continue to run in conjunction with the Youth in Action Programme.

References are made to other issues on the agenda, such as the need for more visibility to the Partnership to achieve understanding and acceptance, as well as its accountability and legitimacy, and tackling migration issues, on which they note the launching of the regional Euro-Med Migration II Programme (2008-2011).Taking note of a recommendation from the Euro-Mediterranean Parliamentary Assembly, the Ministers underline that the position of the EMPA should be further consolidated and its work better articulated with the other institutions of the Partnership. They also stress the need to promote the implementation of concrete action at local and regional level and take note of the important role and contribution of civil society as well as the Economic and Social Councils and Similar institutions.With regard the implementation of projects included in the Paris Declaration (13 July), they welcome the progress on de-pollution of the Mediterranean, they note the work done towards developing a Motorway of the sea project, and make references to progress made and suggestions on civil protection, alternative energies: Mediterranean Solar Plan, higher education and research and the Mediterranean Business Development Initiative

Furthermore, the Ministers reaffirm their commitment to achieve a just, comprehensive, and lasting solution to the Arab-Israeli conflict and mention other relevant issues, including the indirect talks between Israel and Syria, under Turkey’s auspices and the establishment of relations between Lebanon and Syria.They also welcome the dedication and interest expressed by three new members of the Barcelona Process: Union for the Mediterranean – Bosnia and Herzegovina, Republic of Croatia and Montenegro, together with Albania, to add their efforts in contributing to a successful integration of the Adriatic countries in the existing and future initiatives and projects in the Euro-Mediterranean region.The Ministers of Foreign Affairs of the Barcelona Process: Union for the Mediterranean will meet in the second half of 2009 in order to take stock of the progress achieved in the implementation of the working programme for 2009, and the projects agreed and in particular the key initiatives as agreed at the Paris Summit, as well as prepare for the next summit in 2010.

Barcelona Process: Union for the Mediterranean: Ministers meet in Marseille to endorse its working modalities and to agree priorities for 2009 Reference: IP/08/1611 Date: 31/10/2008

IP/08/1611

Brussels, 31 October 2008

Barcelona Process: Union for the Mediterranean: Ministers meet in Marseille to endorse its working modalities and to agree priorities for 2009
Foreign Ministers from all 43 states of the Euro-Mediterranean partnership meet in Marseille on 3-4 November to endorse plans for the mandate, structure and institutional governance of the Barcelona Process: Union for the Mediterranean. The initiative, launched at the Paris Summit of 13th July, aims at injecting a renewed political momentum into the EU’s relations with the Mediterranean through the reinforcement of shared ownership and the achievement of wider visibility through a far-reaching programme of projects. To these ends, Ministers will examine the details of the Commission's proposals for the functioning of the co-presidency as well as the composition, seat and funding of the Secretariat. In efforts to advance the regional integration process, Ministers will also agree on priorities for the 2009 working programme

Commissioner for External Relations and European Neighbourhood Policy, Benita Ferrero-Waldner said: The global and regional challenges we jointly face underline the political and practical imperatives of upgrading our relations with our neighbours. The Barcelona Process has served us well over the past thirteen years; the achievements testify to this – but certain setbacks and limitations remind us also that there is still much to do. And she added: At the Summit of the Union for the Mediterranean in Paris we agreed to continue working on and to reinforce the positive elements of the Barcelona Process, through closer ties between all members, enhancing their sense of ownership of the process and delivering more concrete benefits for citizens of the region. Now, in Marseille, we will take the next steps forward by confirming the new institutional arrangements and agreeing on a work programme for 2009. I am confident that this will add new direction and dynamism to our relations.Ministers will decide on the remit and governance of the new institutional structure, the functioning of the co-Presidency and the composition, seat and funding of the Secretariat, taking into account the discussions and proposals submitted by partners. The new proposed architecture will build on the existing foundations and structures of the Barcelona Process. Projects are at the core of the restructured Partnership, and in their sourcing and administration, the Secretariat will strive to ensure that the selected projects promote growth, employment, regional cohesion and socio-economic integration. The Paris Summit has already identified a number of key areas: de-pollution of the Mediterranean; maritime and land highways; civil protection; Mediterranean Solar Plan; Euro-Mediterranean University; and a Mediterranean business development initiative.

Following the Ministers’ endorsement the Secretariat will seek the necessary additional funding from outside the traditional existing budget allocations. These funds are expected to come from the private sector, international financial institutions and bilateral cooperation as well as contributions from EU member States and Mediterranean Partners.Bearing in mind the Barcelona 5-year work programme and the Declaration of the Paris Summit, ministers will outline their Ministerial meetings agenda and agree on the priorities for the 2009 work programme, in line with the key areas identified in Paris. Ministerials are planned for 2009 in the following sectors: Transport; Higher Education; Environment; Trade; Justice, Liberty and Security; Economy and Finance; Sustainable development; and Strengthening the role of women in society. While the European Neighbourhood Policy will continue to drive bilateral relations in the region with a differentiated approach the Barcelona Process: Union for the Mediterranean will complement this policy by strengthening regional cooperation. More information at:
http://ec.europa.eu/external_relations/euromed/index.htm

OPEN LETTER TO MR SARKOZY LEADER (PRESIDENT) OF THE EUROPEAN UNION.

AND WHILE WERE AT IT HERES AN OPEN LETTER TO MR SARKOZY. PLEASE DISMISS THE USA FROM BEING IN THE ISRAELI-ARAB PEACE PROCESS. CONVINCE OBAMA AND HIS CREW THAT THE EU MUST BE THE GUARENTOR OF THE ISRAELIS. MAKE A 7 YEAR PEACE TREATY WITH ISRAEL AND THE ARABS. MR SARKOSKY IN THIS 7 YEAR TREATY YOU MUST HAVE IT STATED THAT ISRAEL WILL BE ABLE TO REBUILD THE 3RD TEMPLE WITH EUROPEAN UNION TROOPS PROTECTING THE SITE AS TO GUARENTEE ISRAELS SECURITY ON THE TEMPLE MOUNT. THE DOME OF THE ROCK DOES NOT HAVE TO BE DESTROYED AS THE ISRAELIS 3RD TEMPLE WILL FIT ALSO ON THE TEMPLE MOUNT BUT TO THE NORTH OF THE DOME BY THE DOME OF THE SPIRITS. THIS WILL GIVE THE ISRAELIS THEIR 3RD TEMPLE TO SACRIFCE TO THEIR GOD OF ISRAEL AND THE WHOLE WORLD. THE VATICAN COULD MAYBE BUILD A CHURCH ON THE TEMPLE MOUNT ALSO SO THE CHRISTIANS COULD ALSO PRAISE THE GOD OF ISRAEL AND THE WORLD KING JESUS FROM THE TEMPLE MOUNT ALSO. THE EUROPEAN UNION COULD PROTECT ALL 3 GROUPS OF WORSHIPPERS AND ESPECIALLY PROTECT ISRAEL WHILE THEY SACRIFICE THEIR ANIMALS IN THE 3RD TEMPLE. AND THE CHRISTIANS COULD MAYBE SOMEHOW WATCH AS THESE SACRIFICES REPRESENT THE BLOOD OF THEIR KING AND SAVIOUR CHRIST JESUS (ALL GOD AND ALL HUMAN). BUT MR SARKOZY LET ISRAEL BE IN CONTROL OF THE TEMPLE MOUNT, THEY HAVE THE SAY IN ALL THAT IS DONE ON THE MOUNT EXCEPT YOUR EUROPEAN UNION TROOPS ARE ALLOWED ON TO GUARENTEE ISRAELS SECURITY AND RIGHT TO PRAY AND SACRIFICE TO THEIR AWESOME GOD OF ISRAEL AND THE WHOLE EARTH. THANK YOU MR SARKOZY FOR SECURING ISRAELS SECURITY AS USE TAKE FULL AND ONLY CONTROL OF THE ISRAELI-ARAB PEACE PROCESS. REMEMBER MR SARKOZY THE TRUE MESSIAH OF ISRAEL WILL BE RULING FROM THERE IN THE FUTURE SO YOU PROTECT ISRAEL WITH YOUR RAPID REACTION FORCES AND PAVE THE WAY OF SAFETY AS THE TRUE MESSIAH SOON WILL RULE FROM DAVIDS THRONE FOREVER. OH AND ONE LAST THING MR SARKOZY LET THE ISRAELI SANHEDRIN HAVE THEIR ROLE IN THE REBUILDING AND BEING JUDGES LIKE IN BIBLE TIMES.

THIS IS A DIFFERENT STORY I MUST ADMIT....WOW

Sarkozy loses voodoo doll case

A French judge has rejected President Nicolas Sarkozy's attempt to stop sales of a voodoo doll in his image. Dismissing the case, the Paris judge said the doll was within the authorised limits of free expression and the right to humour. Mr Sarkozy's lawyer said the president would appeal against the decision. The doll comes with pins which users can stick into memorable quotes from the president printed on the doll, such as work more to earn more. Mr Sarkozy took the makers of the kit - publishing company K&B - to the courts after it went on sale on 9 October. His lawyer said Mr Sarkozy had exclusive and absolute rights over his own image.

Sales boost

The company refused to stop selling the kit, saying Mr Sarkozy's reaction was totally disproportionate. The case has attracted a fair amount of mockery in France and boosted sales of the kit, says the BBC's Alasdair Sandford in Paris. K&B also released a similar doll of Segolene Royal, Mr Sarkozy's rival in the presidential elections last year. She has decided not to take action against K&B, saying: I have a sense of humour. This is Mr Sarkozy's sixth legal action since he was elected last year, but it is the first case the courts have rejected. Voodoo has become associated with zombies and sticking pins into dolls to curse an enemy, but practitioners say this misrepresents their religion.

Obama calls for swift action on economy By NEDRA PICKLER and LIZ SIDOTI, Associated Press Writers NOV 7,08

AP – President-elect Obama answers questions during a news conference in Chicago, Friday, Nov. 7, 2008. (AP … CHICAGO – President-elect Obama assembled his economic team Friday and soberly told the nation that strong action is needed to confront the greatest economic challenge of our lifetime.In his first news conference since being elected Tuesday, Obama called on Congress to extend unemployment benefits and pass a stimulus bill. But his more ambitious remedies, he said, must wait until he takes office Jan. 20.Obama displayed an air of authority and confidence, standing before a dozen economic advisers and rows of American flags as he spoke for 20 minutes. He mixed lighthearted remarks about family pets (even calling himself a mutt) with grim-faced assessments of the nation's economic predicament.Some of the choices that we make are going to be difficult, he said, reading a statement before taking several questions. It is not going to be easy for us to dig ourselves out of the hole that we are in. But America is a strong and resilient country.Obama urged Congress to pass an economic stimulus measure and extend unemployment benefits either before or just after he takes office. As for bigger decisions, he said, the nation has only one government and one president at a time, and now it is President Bush.However, he said, immediately after I become president, I will confront this economic crisis head-on by taking all necessary steps to ease the credit crisis, help hardworking families, and restore growth and prosperity.I'm confident a new president can have an enormous impact, he said.Obama said he would focus on producing jobs, and he mentioned actions to help the auto industry, small businesses and state and local governments.

He left open the possibility that economic conditions might prompt him to change his tax plan, which would give a break to most families but raise taxes on those making more than $250,000 annually.I think that the plan that we've put forward is the right one, he said, but, obviously, over the next several weeks and months, we're going to be continuing to take a look at the data and see what's taking place in the economy as a whole.Obama said he will review a congratulatory letter from Iran's leader and respond appropriately. It's not something that we should simply do in a knee-jerk fashion, he said. Obama said he wants to be careful to send the signal to the world that I'm not the president and I won't be until Jan. 20.He said he appreciated the cooperation Bush has offered in smoothing his transition to the White House and the president's commitment that his economic policy team keep us informed. He expressed gratitude to Bush for inviting him and his wife, Michelle, to the White House on Monday.Obama said he expected to have a substantive conversation with Bush. I am not going to anticipate problems, he said.As he prepares to join an exclusive club of presidents, Obama said, I've spoken to all of them that are living.

I didn't want to get into a Nancy Reagan thing about, you know, doing any seances, he said with a grin, an apparent exaggerated reference to the former first lady's fondness for astrology.Also in a lighter vein, the president-elect said his family is looking for a dog that will not trigger his daughter Malia's allergies. Ideally, he said, it would come from an animal rescue shelter, but obviously, a lot of shelter dogs are mutts like me.He presumably was referring to his heritage: his father was from Kenya, his mother was from Kansas.Obama and Biden met before the news conference with the transition economic advisory board, a high-powered collection of business, academic and government leaders. They included Lawrence Summers, who some have mentioned as a candidate for Treasury secretary, a post he held in the Clinton administration; Michigan Gov. Jennifer Granholm, whose state has been hit hard by losses in the auto industry; Google CEO Eric Schmidt; and former Federal Reserve Chairman Paul Volcker. Others attending included executives from Xerox Corp., Time Warner Inc.; and the Hyatt hotel company. Investor Warren Buffett called in by telephone. Obama has been meeting privately with his transition team, receiving congratulatory phone calls from foreign leaders and intelligence briefings, and making decisions about who will help run his government. One person frequently mentioned for a Cabinet post, Pennsylvania Gov. Ed Rendell, will not be available until 2011, officials close to him said Friday. Rendell has two years left of his term, and Lt. Gov. Catherine Baker Knoll, a Democrat, is ailing. Next in line to be governor is the Republican president pro tempore the state Senate. Rather than take the chance that the GOP would gain control of the governor's office, Rendell has signaled he will stay put for the time being. On Friday morning, Obama and his wife, Michelle, attended a parent-teacher conference at the University of Chicago Lab School where their daughters, Malia and Sasha, are students. Obama planned to stay home through the weekend, with a blackout on news announcements so he and his staff can rest after the grueling campaign. He is planning a family getaway to Hawaii in December before they move to the White House, and to honor his grandmother, Madelyn Dunham, who died Sunday at her home there. Liz Sidoti reported from Washington.

EU DICTATOR (WORLD LEADER)

REVELATION 17:12-13
12 And the ten horns (NATIONS) which thou sawest are ten kings, which have received no kingdom as yet; but receive power as kings one hour with the beast.
13 These have one mind, and shall give their power and strength unto the beast.

REVELATION 6:1-2
1 And I saw when the Lamb opened one of the seals, and I heard, as it were the noise of thunder, one of the four beasts saying, Come and see.
2 And I saw, and behold a white horse:(PEACE) and he that sat on him had a bow;(EU DICTATOR) and a crown was given unto him:(PRESIDENT OF THE EU) and he went forth conquering, and to conquer.(MILITARY GENIUS)

REVELATION 13:1-10
1 And I stood upon the sand of the sea, and saw a beast rise up out of the sea, having seven heads and ten horns, and upon his horns ten crowns, and upon his heads the name of blasphemy.(THE EU AND ITS DICTATOR IS GODLESS)
2 And the beast which I saw was like unto a leopard, and his feet were as the feet of a bear, and his mouth as the mouth of a lion: and the dragon gave him his power, and his seat, and great authority.(DICTATOR COMES FROM NEW AGE OR OCCULT)
3 And I saw one of his heads as it were wounded to death;(MURDERERD) and his deadly wound was healed:(COMES BACK TO LIFE) and all the world wondered after the beast.(THE WORLD THINKS ITS GOD IN THE FLESH, MESSIAH TO ISRAEL)
4 And they worshipped the dragon (SATAN) which gave power unto the beast:(JEWISH EU DICTATOR) and they worshipped the beast, saying, Who is like unto the beast? who is able to make war with him?(FALSE RESURRECTION,SATAN BRINGS HIM TO LIFE)
5 And there was given unto him a mouth speaking great things and blasphemies; and power was given unto him to continue forty and two months.(GIVEN WORLD CONTROL FOR 3 1/2YRS)
6 And he opened his mouth in blasphemy against God,(HES A GOD HATER) to blaspheme his name, and his tabernacle, and them that dwell in heaven.(HES A LIBERAL OR DEMOCRAT,WILL PUT ANYTHING ABOUT GOD DOWN)
7 And it was given unto him to make war with the saints,(BEHEAD THEM) and to overcome them: and power was given him over all kindreds, and tongues, and nations.(WORLD DOMINATION)
8 And all that dwell upon the earth shall worship him, whose names are not written in the book of life of the Lamb slain from the foundation of the world.(WORLD DICTATOR)
9 If any man have an ear, let him hear.
10 He that leadeth into captivity shall go into captivity: he that killeth with the sword must be killed with the sword. Here is the patience and the faith of the saints.(SAVED CHRISTIANS AND JEWS DIE FOR THEIR FAITH AT THIS TIME,NOW WE ARE SAVED BY GRACE BUT DURING THE 7 YEARS OF HELL ON EARTH, PEOPLE WILL BE PUT TO DEATH (BEHEADINGS) FOR THEIR BELIEF IN GOD (JESUS) OR THE BIBLE.

THE WEEK OF DANIEL 9:27 WE KNOW ITS 7 YRS

Heres the scripture 1 week = 7 yrs Genesis 29:27-29
27 Fulfil her week, and we will give thee this also for the service which thou shalt serve with me yet seven other years.
28 And Jacob did so, and fulfilled her week: and he gave him Rachel his daughter to wife also.
29 And Laban gave to Rachel his daughter Bilhah his handmaid to be her maid.

DANIEL 9:26-27
26 And after threescore and two weeks shall Messiah be cut off, but not for himself: and the people of the prince that shall come (ROMANS IN AD 70) shall destroy the city and the sanctuary;(ROMANS DESTROYED THE 2ND TEMPLE) and the end thereof shall be with a flood, and unto the end of the war desolations are determined.
27 And he( EU ROMAN, JEWISH DICTATOR) shall confirm the covenant with many for one week:( 7 YEARS) and in the midst of the week he shall cause the sacrifice and the oblation to cease,( 3 1/2 YRS) and for the overspreading of abominations he shall make it desolate, even until the consummation, and that determined shall be poured upon the desolate.

WORLD GOVERNMENT

DANIEL 7:23-25
23 Thus he said, The fourth beast shall be the fourth kingdom upon earth, which shall be diverse from all kingdoms, and shall devour the whole earth, and shall tread it down, and break it in pieces.
24 And the ten horns out of this kingdom are ten kings that shall arise: and another shall rise after them; and he shall be diverse from the first, and he shall subdue three kings.
25 And he shall speak great words against the most High, and shall wear out the saints of the most High, and think to change times and laws: and they shall be given into his hand until a time and times and the dividing of time.

DANIEL 12:4,1
4 But thou, O Daniel, shut up the words, and seal the book, even to the time of the end: many shall run to and fro, and knowledge shall be increased.
1 And at that time shall Michael stand up, the great prince which standeth for the children of thy people: and there shall be a time of trouble, such as never was since there was a nation even to that same time: and at that time thy people shall be delivered, every one that shall be found written in the book.

REVELATION 13:1-3,7,8,12,16-18
1 And I stood upon the sand of the sea, and saw a beast rise up out of the sea, having seven heads and ten horns, and upon his horns ten crowns, and upon his heads the name of blasphemy.
2 And the beast which I saw was like unto a leopard, and his feet were as the feet of a bear, and his mouth as the mouth of a lion: and the dragon gave him his power, and his seat, and great authority.
3 And I saw one of his heads as it were wounded to death; and his deadly wound was healed: and all the world wondered after the beast.
7 And it was given unto him to make war with the saints, and to overcome them: and power was given him over all kindreds, and tongues, and nations.
8 And all that dwell upon the earth shall worship him, whose names are not written in the book of life of the Lamb slain from the foundation of the world.
12 And he exerciseth all the power of the first beast before him, and causeth the earth and them which dwell therein to worship the first beast, whose deadly wound was healed.
16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.

REVELATION 17:3,7,9-10,12,18
3 So he carried me away in the spirit into the wilderness: and I saw a woman sit upon a scarlet coloured beast, full of names of blasphemy, having seven heads and ten horns.
7 And the angel said unto me, Wherefore didst thou marvel? I will tell thee the mystery of the woman, and of the beast that carrieth her, which hath the seven heads and ten horns.
9 And here is the mind which hath wisdom. The seven heads are seven mountains, on which the woman sitteth.
10 And there are seven kings: five are fallen, and one is, and the other is not yet come; and when he cometh, he must continue a short space.
12 And the ten horns which thou sawest are ten kings, which have received no kingdom as yet; but receive power as kings one hour with the beast.
18 And the woman which thou sawest is that great city, which reigneth over the kings of the earth.

OLD BUT INTERESTING STORYS ABOUT INTERNATIONAL FINANCIAL ARCHITECTURE

First Thoughts on the Okinawa Summit, 21-23 July 2000
http://www.g7.utoronto.ca/evaluations/2000okinawa/bayne.html

NOTES ON THE NEW GLOBAL HUMAN ORDER
http://www.acs-aec.org/About/SG/Girvan/Speeches/nworder_eng.htm

FINANCING FOR DEVELOPMENT HEARINGS WITH CIVIL SOCIETY
http://www.un-ngls.org/documents/text/roundup/65ffd.htm

A summary of recent initiatives by various international financial bodies
http://www.pust.edu/oikonomia/pages/2002/2002_ottobre/avvenimenti.htm

IMF Admits Bankruptcy;Wall Street Alternatives a Fraud
http://www.larouchepub.com/other/2001/2847imf_bankrpt.html

Statement by Governor Nout Wellink, on behalf of Gerrit Zalm, Minister of Finance of the Netherlands Representing the constituency consisting of Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, Israel, Former Yugoslav Republic of Macedonia, Moldova, the Netherlands, Romania, and Ukraine International Monetary and Financial Committee Fifth Meeting April 20, 2002 Washington, D.C.

Economic outlook: finding the way up

There are increasing signs that the world economy has turned the corner and has steered clear of a global recession. Amidst positive projections for this and particularly next year, it is easy to forget how close a call it was. As some observers have noticed, it's the recession that wasn't. Although Japan experienced its most severe recession of the last decade, the US and the euro area still registered positive growth in 2001, whilst the financial system displayed its resilence in the aftermath of some global shocks. Today there seems to be a growing denial that the global economy was ever in any real danger. Although good prospects are preferable to bad memories, the current optimism bears two serious risks.

First, structural imbalances have largely remained. Containing the US current account and private sector debts, restructuring the Japanese financial and corporate system, and reforming Europe's product and labour markets will be crucial to put the world economy on a high and sustainable growth path. Besides, there are a number of potential threats to a strong economic recovery in the short run, notably the uncertainties related to the war against terrorism, the instability in the Middle-East, which has already pushed up oil prices, and possible risks of the economic situation in Latin America.

Secondly, it should be noted that while global growth was still positive in 2001, world trade growth slowed almost to zero from no less than 12 percent in the previous year. This was a considerably sharper fall than in 1991, which registered as a year of global recession. Although the current trade outlook is far more positive, it risks being undermined by indications that major economies are not committed to free international trade. The US curbs on steels imports not only disrupt world trade, but also send a wrong signal to the developing world. They might even overshadow the powerful impetus that was given to the start of the global trade liberalisation round last year. Together with our European partners, we therefore call on the US administration to also remain committed to free trade principles and practices, as well as to the rules of the WTO.

The international financial architecture: work in progress

In response to the various crises of the nineties, the IMF has played a crucial and constructive role in reforming the international financial architecture. But this architecture - consisting of measures to prevent and resolve financial crises - needs continuous maintenance and fortification, as illustrated by recent cases of Argentina and Turkey. There are three main players in the resolution of financial crises: the national authorities, the international community, notably the IMF and, last but not least, the private creditors. Financial crises should therefore also be managed by these three parties. As outlined below, strengthening the international financial architecture implies a stronger role for the Fund in surveillance, more private sector involvement in crisis resolution and greater country ownership of adjustment programs through a streamlined conditionality. Incentives need to be created to get all three parties on board.

IMF surveillance: the key pillar of crisis prevention

The effectiveness of surveillance as a crisis prevention tool depends on its ability to detect potential vulnerabilities in member countries. In this context, significant progress has been made in adapting the IMF surveillance to the changes in the global financial environment, particularly to the stronger integration of financial markets. Against this background, we support the work aimed at strengthening the financial sectors via the FSAPs and the Netherlands is keen to participate in such a program in 2003. We also welcome the Fund's efforts to intensify its assessments of offshore financial centres, since these centres play an increasingly large role in the intermediation of international capital. Cyprus was the first country to complete a full OFC-assessment, while also the Netherlands Antilles and Aruba are in the process of doing so. Moreover, we attach great significance to an effective Fund surveillance and invite the MD to develop proposals to making it more transparent, accountable and objective.

To this end, we would like to share five concrete and practical suggestions. First, we propose that every Article IV report contains debt sustainability analyses (including stress tests) as well as an assessment of the soundness of the financial sector. Second, in order to enhance transparency vis-à-vis private parties and the public at large, we encourage the Fund and its member states to move towards full publication of Article IV reports. If needed, the reports published might be filtered for market sensitive information. Third, to give Article IV consultations more bite, missions should be planned less on the basis of staff schedules and more on the basis of the agenda of the national policy debate. For example, missions could be held in the initial stages of the country's budget preparation or after rather than before national elections. Fourth, each program document could start with a brief account of past surveillance. This would directly promote the accountability of the IMF surveillance, indicate to what extent national authorities have adhered to IMF advice in the past as well as indicate to what extent earlier surveillance had rightly signalled risks. Finally, we call for enhanced co-ordination between the different surveillance activities of the Fund, such as Article IV consultations, FSAPs and ROSCs, which would foster its overall effectiveness.

Resolving financial crises: from bail-outs to work-outs

The application of the PSI-principles, agreed in Prague in 2000, in the management of the crises in Argentina and Turkey has been disappointing. In both cases, the Fund supplied exceptionally large financing packages, while the private sector was not involved in a systematic manner. However, in crisis management, it takes three to tango. Against this background, we strongly welcome the initiative taken by Fund management for a formal mechanism to facilitate an orderly restructuring of sovereign debt (SDRM). The rationale for such a mechanism is four-fold: it could help solve creditor coordination problems, prevent the building up of excessive debt positions, strengthen crisis management and enhance the credibility of the Fund's access policies. Although the IMF's diagnosis is widely shared, there is unfortunately less agreement on the proposed cure. In this regard, we are particularly puzzled by assertions that the proposed bankruptcy mechanism would not be market-oriented. Something that is a cornerstone of a market economy on a national level cannot suddenly become market-unfriendly when implemented on a global level1. This is not to deny that there are considerable differences between corporate and sovereign bankruptcy procedures.

We encourage the elaboration of the SDRM-proposal, aiming at a statutory solution to the restructuring problem. In this context, we feel that the role of the Fund in the various stages of application of the mechanism could remain `light', as recently suggested by Ms. Krueger. Key decision-making powers would then be placed in the hands of the member country and the supermajority of the creditors. At the same time of course, the interests of debtor countries should not be overlooked. While supporting the SDRM, we acknowledge that, in light of the political and legal challenges it raises, it should be seen as a medium term goal. In the meantime, other complementary approaches to enhance the application of PSI should be pursued with urgency. In particular, it is important that a widespread use of collective action clauses is actively promoted. These clauses can play a key role in facilitating restructuring in the interim period before the new debt restructuring mechanism is in place and in restructuring in the `shadow of the law' once it has been established. Indeed, the two approaches should be viewed as mutually supportive, since collective action clauses will only bind in holders of the same bond issue, and thus will take us only part of the way. Other complementary measures are also needed: ensuring that predetermined access limits are adhered to; fleshing out the `lending into arrears policy in order to facilitate informal standstills; and deepening the analytical basis for the assessments of debt sustainability.

Boosting ownership through streamlining conditionality

In 2000, the majority of the IMF membership supported proposals of MD Köhler to focus and streamline conditionality and enhance country ownership of IMF-supported programs. One year and a half down the road, following profound discussions on both the coverage and the instruments of conditionality, the commitment to these objectives seems to be dwindling. This is the more worrying since actual progress has been limited so far, and the burden of conditionality on debtor countries remains considerable. We strongly encourage further efforts to deliver results in this field and are in favour of revising the conditionality guidelines, which is scheduled for this year's Annual Meeting.

Against this background, we would like to share four suggestions to promote national ownership. This would, in turn, enhance the effectiveness of IMF-lending and clean up IMF's reputation as an institution that micro manages on a macro-scale. First, in designing adjustment programs, missions should discuss with the national authorities alternative policy scenarios to achieve the agreed program objectives and should spell out the trade-offs involved rather than prescribing a single set of detailed policy actions. Second, outcome-based conditionality should be promoted as much as possible. At the same time, we recognize that in the first phase of a program, monitoring may often still need to be based on the implementation of policy measures, which are considered time sensitive as well as essential. Thereafter, more emphasis may be placed on outcomes achieved. Outcome-based conditionality is therefore especially suitable for programs with their focus on structural policies, sustained economic growth and poverty reduction. In certain cases, this may be combined with so-called floating tranche disbursements, which would further increase the scope for ownership. Third, restraint should be exercised in using prior actions. The IMF should always justify why certain prior actions have been included in the program by spelling out why these are crucial for macro-economic and financial stability. Consideration could be given to setting a specific threshold with respect to the number of prior actions above which formal reporting to the Board would become mandatory. The use of prior actions could further be reduced by specifying these measures, if possible, as floating tranche conditions. Finally, important measures outside the Fund's mandate should primarily be dealt with by other institutions, notably the World Bank. We therefore support a further improvement in the mutual co-operation on this account. We hope these suggestions further stimulate a discussion on what we earlier labelled the four M's of conditionality: Mandate, Macro-management, Motivation and Multilateral cooperation.

Other areas of concern

The role of the IMF in poor countries. The Financing for Development conference was a success. We commend the IMF and the World Bank on their key roles to mobilise support to increase development assistance in order to achieve the Millennium Development Goals (MDGs). The PRSP/PRGF review has revealed significant progress. But local capacity and genuine country ownership often remain the Achilles' heel of the PRSP-process and need to be addressed energetically. In order to sustain the success of the HIPC-initiative over the next years, its expected financing gap of at least US$ 0.7 bln needs to be dealt with soon.

Money laundering and financing of terrorism. We strongly back the international fight against money-laundering and the financing of terrorism. Given their potential adverse impact of these subversive activities on national and international financial stability, the IMF, together with the World Bank and FATF, is encouraged to keep playing an active role in this field. In order to be effective the role of the IMF should remain within its mandate and expertise. A strict division of labor and responsibilities with other relevant organizations should guarantee a comprehensive assessment of all aspects of money laundering and terrorist financing in individual country assessments, based on the ROSC principles of being uniform, cooperative and voluntary. A possible extension of IMF conditionality critically rests on the assumption that measures with respect to money laundering and financing of terrorism are essential for macro-economic and financial stability.

Independent Evaluation Office. We believe that the newly established Evaluation Office can play an important and constructive role in further shaping the role of the IMF in strengthening the international financial architecture. In this respect, we hope that it will pay due attention to all three parties involved, especially to ways the IMF has attempted to involve the private sector, when it analyses recent capital account crises.
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1As noted by Rogoff and Zettelmeyer (2002), Adam Smith already advocated in 1776 in The Wealth of Nations: when it becomes necessary for a state to declare itself bankrupt, in the same manner as when it becomes necessary for an individual to do so, a fair, open and avowed bankruptcy is always the measure which is both least dishonourable to the debtor, and least hurtful to the creditor.