Dodd-Frank will not lead to global imitations
Wednesday, July 21, 2010 at 12:05AM
Thomas P.M. Barnett in Citation Post, global economy, new rules, rule-set reset

Economist editorial on the 2,300-page bill.

What it got right was dealing with the fragmented regulatory nature of our financial system.

But the rule-set's global influence will be limited:

At the G20 Mr Obama boasted of “leading by example” on financial reform. In fact, Dodd-Frank is too idiosyncratically American and too incomplete to be a true template for others. And his claim that it would keep a financial crisis like the one the world just went through “from ever happening again” is bound to prove wrong. Yet imperfect though it is, the reform is proof that even a government as fractious as America’s can move with impressive speed when the motivation is there.

Expecting more or better in this age of globalization's rapid expansion is simply unwarranted. We may have birthed the system, but it has grown in complexity and heterogeneity beyond our ability to lead by example in rule-set resets.

Article originally appeared on Thomas P.M. Barnett (https://thomaspmbarnett.com/).
See website for complete article licensing information.