Accueil \ Previous editions \ 2009 - Meeting on sustainable finance \ The 2009 Theme
The 2009 Theme
After Diversity in 2007 and the Protection of the Planet in 2008, the 3rd edition of World Forum Lille took place on the 19th, 20th and 21st of November 2009 and was dedicated to « Sustainable finance » What are the best practices in the field of finance?
.
They say that « money leads the world », but where to? Is the financial crisis a deplorable answer to that question?
This is the acute indication of a crisis of meaning. It was predictable to a large extent and was caused by:
- A greedy obsession with short-term gain (earning as much as possible in minimum time);
- The ensuing multiplication of increasingly complex and impenetrable financial products;
- An “easy money” policy (encouraged by certain public authorities) pushing for excessive indebtedness;
- A widening gap between the financial and speculative sphere, on the one hand, and « real economy », on the other.
This spiral generated increased inequalities, as factor of instability.
A DISASTER THAT BREEDS DISASTERS
The crisis affecting the financial area has already massively destroyed employment. Unfortunately, others will ensue elsewhere: the financial disaster will extend to the whole economy like a disease.
This extremely serious economic crisis promises to be long, with a sharp decline in growth and a rising unemployment trend. Under such tragic circumstances, the need for global regulations appears both crucial and urgent.
Governments are working on this issue, but despite implemented principles , concrete results should not be taken for granted, far from it. Interests differ among developed and emerging countries. As for developing countries, they are, once again, left aside.
If we look back at History, we can see that after the Great Depression of 1929, it took some fifteen years and World War II for the planet to be – temporarily – regulated by reasonable economic rules. That was in Bretton Woods in 1944 and this newly introduced system had not been applied for three decades when it was later laid aside in 1971.
REGULATIONS AND RESPONSIBILITY
World regulations are more needed than ever. But, however extensive they may be, this will not be sufficient. As John Kenneth Galbraith noted in his « Short History of Financial Euphoria », « any regulations declaring financial credulity and collective euphoria as outlawed are no practical option ».
To leave the crisis behind, economic players need to fully assume their own responsibilities, whatever the means of control and regulations may be:
• By giving preference to long term strategies over short term illusions;
• By incorporating extra-financial standards into their financial decisions.
BEST PRACTICES TO FIGHT AGAINST THE CRISIS
Corporate social and environmental responsibility also applies to the use of money.
The sudden collapse of financial empires should not overshadow countless initiatives that show that an alternate approach to finance is possible… and beneficial.
This is demonstrated by the Best Practices various businesses or organisations have implemented. Were such good practices jeopardised by the crisis? Or, quite on the opposite, did it enable its champions to better fight against the crisis?
In any case, one thing is certain: if such good practice had been spread more widely, the crisis would not have stricken the globe to such a large extent. Perhaps even, there would have been no crisis.
This is yet another reason to know and disseminate these best practices.
This is the ambition of the « World Forum of Lille » (World Forum on Responsible Economy) which will be held for the third consecutive time on 19th, 20th and 21st November 2009 in Lille, France.
