Economic council calls for global cooperation

Emerging economies should have a bigger voice in global economic policies to bring the world out of its recession, said World Economic Forum Global Agenda Council in a report released on Monday.

"With immature capital and bond markets and limited supervisory capacity, unintended regulatory fragmentation could occur with negative consequences for the global financial system," according to the report, which comes one week before the World Economic Forum is held in Switzerland on Jan 22.

The council suggests international cooperation should help the financial sectors in different countries mature. It discouraged a one-size-fits-all prescriptive approach.

"Many emerging markets worry they lack the infrastructure and financial platforms to ensure effective implementation of some highly complex financial reforms," said the report. "As a result, it is timely for G-20 political leaders to reconsider whether the extent of international policy coordination is adequate given the emerging fragmentation and trust deficits."

"Part of renewed international coordination should involve making emerging economies greater 'policy partners' in the common purpose of building a more efficient, effective and resilient global financial system," said the report.