Jomo on lessons not learned

By Beh Kay Hieng, Free Malaysia Today

Renowned economist Dr. Jomo Kwame Sundaram believes that financial liberalisation is not the way to go as it has been proven to have little or no effect on economic growth.

Delivering a lecture entitled “When will we ever learn? Has Malaysia learnt the correct lessons from past crises?” he said financial liberalisation had caused a “bleeding of resources from poor to rich countries.”

Dr Jomo, who is the Assistant Secretary General for Economic Development in the United Nations’ Department of Economic and Social Affairs, said it would be wrong to credit financial liberalisation for the Malaysian boom in the years before the 1997 Asian financial crisis.

That success was due to palm oil, he maintained.