VIII General Assembly and Annual Conference

Under the theme "The Political Dimensions of the World Economic Crisis" over 100 former and current Heads of State and Government and economics and social affairs experts convened to discuss the challenges of the current crisis, challenges that are systemic and far from limited to financial institutions. The gathering was an unprecedented opportunity to rethink the entrenched ways in which leaders have been doing things and to promote reforms to achieve a more democratic model.

The financial turmoil that erupted in the US in August 2007 became, after the financial meltdown of mid-September 2008, the worst financial crisis and the worst global recession since the Great Depression of the 1930s. The severity of what came to be called the “Great Recession” and the collapse of international trade that accompanied it surprised even experts. The crisis had global and systemic characteristics. It showed, in particular, how dysfunctional the current international financial architecture is to manage today’s global economy. The global response has been coordinated by the G-20 and has had some novel features, but has also been partial in scope, leaving aside major issues that must also be included in any comprehensive reform of the international financial architecture.

The macroeconomic and financial policy responses to the crisis were strong though diverse among major economies. The financial meltdown was reversed and there was a recovery of economic activity in some economies, particularly in Asia, during the second quarter of 2009 and of a broader group of countries during the third quarter. Overall, these results represent a major success of Keynesian counter-cyclical macroeconomic policies. However, the recovery is still incomplete and, particularly, depends on the large stimulus that continues to be provided. Furthermore, credit remains subdued and financial stability has not been fully restored, international trade is still depressed and there is agreement that it will take a long time to reverse some of the social costs of the crisis, particularly the deterioration in employment conditions. We may be subject to new unpleasant surprises.



Agenda

http://www.clubmadrid.org/img/secciones/Programme_Conference_eng.pdf

List of Participants

http://www.clubmadrid.org/img/secciones/Participants_Conference_eng.pdf

General Background Document

http://www.clubmadrid.org/img/secciones/GENERAL_DOC.pdf

Final Declaration

http://www.clubmadrid.org/img/secciones/DECLARATION_eng_FINAL.pdf

The Annual Conference in Pictures

http://www.clubmadrid.org/en/galeria/viii_general_assembly_and_annual_conference

Summary Video of the Annual Conference

http://www.clubmadrid.org/en/galeria/viii_general_assembly_and_annual_conference