Bush supports free markets despite global economic crisis

By Hwang Doo-hyong
WASHINGTON, Nov. 13 (Yonhap) -- U.S. President George W. Bush expressed support
Thursday for free markets and less government involvement despite the ongoing
global economic crisis that critics say was created by a laissez-faire economy.

"While reforms in the financial sector are essential, the long-term solution to
today's problems is sustained economic growth," Bush said in a speech to the
Federal Hall National Memorial, in New York, according to a transcript released
by the White House. "And the surest path to that growth is free markets and free
people."
The outgoing president dismissed allegations that lack of proper regulation
resulted in the subprime mortgage crisis that subsequently created the global
financial meltdown.
"Many European countries had much more extensive regulations, and still
experienced problems almost identical to our own," he said.
"Our aim should not be more government, it should be smarter government," he said
on the eve of a dinner meeting Friday with heads of state arriving for the G20
economic summit. "We must recognize that government intervention is not a
cure-all."
Bush's remarks come amid suspicions that the unprecedented summit of leaders of
20 industrialized and developing countries will not be able to produce tangible
results due to the U.S. presidential transition.
Bush has been at odds with President-elect Barack Obama over ways to address the
financial crisis, with Obama supporting more government involvement, including
provision of an additional economic stimulus package aside from the US$700
billion bailout, financial aid to struggling U.S. automakers and opposition to
pending free trade agreements with South Korea, Colombia and Panama.
Despite calls by summit participants for a guarantee of continued U.S.
commitment, Obama will not attend, saying the U.S. has just one president at a
time. Instead, the president-elect is sending former Secretary of State Madeleine
Albright and ex-Congressman Jim Leach as his representatives to the summit.
Bush, however, admitted the need to make reforms of free market capitalism, which
he said "is not perfect" and "can be subject to excesses and abuse."
"It's true this crisis included failures by lenders and borrowers and by
financial firms and by governments and independent regulators," he said. "But the
crisis was not a failure of the free market system. And the answer is not to try
to reinvent that system. It is to fix the problems we face, make the reforms we
need, and move forward with the free market principles that have delivered
prosperity and hope to people all across the globe."
Bush asked the global community to resist the temptation of protectionism, saying
the U.S. Congress introduced protectionist measures in the Great Depression in
1929 only to ruin the U.S. economy.
He attributed the economic boom in South Korea, Japan, Singapore and other Asian
economies to open and free markets.
"Free markets allowed South Korea to make itself into one of the most
technologically advanced societies in the world. Free markets allowed Japan, an
island with few natural resources, to recover from war and grow into the world's
second-largest economy," he said. "And it would be a terrible mistake to allow a
few months of crisis to undermine 60 years of success."
In this context, Bush urged Congress to approve the pending free trade deals with
South Korea, Colombia and Panama, and called for all nations to conclude a
framework this year that leads to a successful Doha multilateral trade agreement.
Bush dismissed concerns about American leadership in the wake of the financial
crisis spawned by Wall Street.
"I know some may question whether America's leadership in the global economy will
continue," he said. "The world will see the resilience of America once again. We
will work with our partners to correct the problems in the global financial
system. We will rebuild our economic strength. And we will continue to lead the
world toward prosperity and peace."
At Saturday's economic summit, Bush said he hopes to discuss ways to "lay the
foundation for reforms that will help prevent a similar crisis in the future." He
said the summit should be the first of a series of meetings.
Bush put forth five key objectives to be discussed in the summit.
They are "understanding the causes of the global crisis, reviewing the
effectiveness of our responses thus far, developing principles for reforming our
financial and regulatory systems, launching a specific action plan to implement
those principles, and reaffirming our conviction that free market principles
offer the surest path to lasting prosperity," he said.
hdh@yna.co.kr
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