30 Sep 2008

Solomon Islands PM criticises international financial system

10:50 am on 30 September 2008

Solomon Islands Prime Minister, Derek Sikua, has been critical of the international financial system.

Addressing the United Nations General Assembly in New York, Dr Sikua said the imbalances of the international financial system have exposed the inability of the major developing market to response to the volatility of the system resulting in state interventions.

He said the world economy is looking more precarious and unequal.

Dr Sikua said for small open economies the results are catastrophic, hence they must be cautious in using the free market approach and recognise its limitations.

The Solomon Island Broadcasting Corporation quotes the Prime Ministers as saying the increase in the cost of food and energy is causing micro-economic instability throughout the world today