A presentation held by mr Ulf Dahlsten, Research Associate at the London School of Economics and Senior Advisor at Global Climate Forum in Berlin, at the seminar "Financial reform for a sustainable economy" on the 28th of January. The seminar was organized by the think tank Global Utmaning (Global Challenge).

1. Ulf Dahlsten

4. Ultimately this is all about
accountability: we need a financial
sector that is accountable to the
real economy—one that adds value,
not destroys it.

5. 1950 1952 1955 1957 1960 1962 1965 1967 1970 1972 1975 1977 1980 1982 1985 1987 1990 1992 1995 1997 2000200220052007 2010

6.  In the 60’s each additional dollar of new credit led to
59 cents in new GDP in the US, during the 00’s only 18
cents
 Only 6,5 % of the capital invested 2005-2011 by private
equity funds was used to add capital to the companies
 The volatility on the stock markets is blocking the
possibilities for equity financing
 There is an emerging equity gap. McKinsey has
calculated that European companies will lack 3 trillion
dollars in equity by 2020

7. Eoropean bank assets in relation to GDP

9. Going from 600 000 to 85 000 000

10.  The Chicago Plan (Kumhof)
 Capital flow controls

11.  Weighted liquidity buffers (Basel)
 Tobin tax
 Innovative regulations
 Developed bonus systems

12.  Separate investment banks from retail banks
 Break up the “mega-banks”
 Reintroduce partnerships for investment banks
 Recreate local banking

13.  Develop the corporate bond market
 Develop alternative monetary systems (Lietaer)

14.  “Regional reserve currencies” – the USD, the EUR
and the RMB.
 Chinese proposal: A new global reserve currency

15. • No need
• A global democracy
• Create an international legislator for the global
market economy
• Stop globalization – delocalize!