Supervision standards for various fields of financial sector are mostly formulated by international organizations for developed nations. Developing countries should assess the whether these standards would agree with their real situation before making decisions on adopting them, urged Mr. Jose Antonio Ocampo, Under-Secretary-General of UN in his speech delivered at 2004 Beijing International Financial Forum on May 19.

He argued that different structures for financial systems should be applied to adapt to different areas. He called for developing nations to keep alert on financial crisis which generally breaks out in a period of robust economic expansion. He believed it would be crucial for developing countries to carry out efficient management of their economy to reduce uncertainties. For example, hot money should be put under strict control.

Developed countries are the main rule makers for supervision of various fields in the financial sector, from corporate governance and banking sector to insurance and pension, and stock market. Developing countries, even if they participate into such processes, can hardly effect influence on development and adjustment of these standards.

Given this, a developing nation should make sure theses standards are compatible with the real situation in the country before any decisions are made, suggested Ocampo. He concluded his speech by quoting a talk of governor of People's Bank of China that the monopoly of a minority of

developed countries on formulating international financial rules must be broken down.

The Under-Secretary-General of UN also talked about corporate governance. In his view, it is necessary to have a board of directors which secures interests of stockholders, efficient external supervision and legal system, independent external auditing, a perfect commercial moral culture, and independent journalism to put any scandals to light.

Source: People's Daily Online