GREXIT, Openness, Transparency and Honesty in Systems (GOTHS): Public Affairs Reflections on Changing Economies and Societies

Abstract

Editorial Financial capacity and political perspicacity are inversely correlated. Long-run salvation by men of business has never been highly regarded if it means disturbance of orderly life and convenience in the present. So inaction will be advocated in the present even though it means deep trouble in the future. Here, at least equally with Communism, lies the threat to Capitalism. It is what causes men who know that things are going quite wrong to say that things are fundamentally sound.’ Galbraith (2009), The Great Crash of 1929. Page 194 The rumbles of the fallout from the 2008 financial crisis are still with us as the EU has put together another bailout proposal for Greece as a member of the Euro Zone. One wonders whether monitoring and support for quality fiscal management of economies within the Euro Zone have been as robust and rigorous as it should have been. Clearly something for the banks, finance ministers, businesses and economists to reflect on as the Greek Banking system is propped up by Central European economies. Good basic banking is paramount; one can only borrow what one can payback at a realistic rate or one starts moving into areas of usury level re-payments and financial distrust and disharmony in society. To tread carefully, stimulate business, civic society, creativity and be supportive of well managed economies seems to be the general rule that works. Finance and international banking is increasingly attracting major public affairs activity, partly a result of the failures in the system which led to the financial crash in 2008. Bankers were not the only people to blame for the crash but also central bankers and other international financial regulators who bear the responsibility too, who mishandled the crisis and failed to keep economic imbalances in check and for not exercising proper oversight of institutions. The development of the Asian Infrastructure Investment Bank and gradual roll out of the RMB as a world trading currency may lead to greater transparency and balance on theworld financial scene and help stimulate better global regulation of markets and currencies. The signs are good that this will happen. Clearly reform of financial institutions to cope with the rapid speed of financial trading, markets and shifting trends in world trade and investment is needed, underpinned by greater transparency and regulation. The issue contains arange of articles.