Economic system to be made resilient to crises

The government will soon take corrective measures to lay the foundation of an economic system capable of facing all changes and crises at any time, said chairman of Sharjah Chamber of Commerce and Industry (SCCI).

Ahmed Mohammed Al Midfa was speaking during a discussion session organised by the SCCI on the global financial crisis.

He praised measures taken by the UAE government to protect the economy. He briefed the chamber members on the current situation and fallout of the global financial crisis as well as the direct and real causes that led to the turmoil.

Meanwhile, Dr Bruce Yandle, Dean Emeritus of Clemson University's College of Business and Behavioural Sciences, in his lecture shed light on the fallout of the financial crisis on the US economy in particular and on other regions of the world in addition to the direct reasons of the financial woes.

He said the impact of the financial crisis on world economies lies in the fact that most currencies are pegged to the dollar while oil is also linked to the greenback and any drop in its consumption would affect the world economy.

Dr Yandle reviewed the measures and procedures that can be taken to salvage the world economy through boosting government financial reserves in central banks as well as enacting laws and legislations to protect economies and to reconsider the fiscal, financial and economic policy.

He said a group of experts and academics is now working on enacting and amending laws with relation to real estate mortgage in the US.

Dr Yandle expected the crisis to worsen over the coming period and to recede within one year or more in case precautionary and preventive measures recommended by experts are followed.

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