Merci d'être ici aujourd'hui et bienvenue à cette 14e lecture annuelle de la UNU, déformée en cours de la monéterie internationale et de l'architecture financière. Je suis Jean-Marc Coaco, ici à l'U.N. de l'Université de la Nations. Comme vous le savez, l'Union de l'Université de la Nations est un grand merci au UN et à l'Université de l'Université. C'est en fait l'armée économique de l'Union de l'Université. Nous sommes au capital du Japon de Tokyo et nous avons 14 étudiants et institutions de retraite locatées autour du monde. En Asie, nous sommes présents en Japon, bien sûr, où nous sommes au capital, mais aussi en Chine et en Malais. En Afrique, nous utilisons le Akra, le Ghana, comme un hub pour les activités en Afrique et en Ouest. En Europe, nous avons des centres en Finlande, la Névelle, le Gérémonie, le Belgique et l'Isle. Et en Amérique, nous sommes présents en Canada, l'Union de l'Université et en Venezuela. Le thème de notre travail est la sustainability. Nous avons une spécialisation sur la sécurité internationale, le développement international et l'environnement international. Tout le travail que nous faisons est policier orienté et nous nous contactons avec des collègues de l'Université de l'Université, mais aussi les secteurs publics et privés à l'union régionale et l'union internationale et aussi des collègues de l'Université de l'Université. Pour aujourd'hui, nous sommes très heureux d'être venus ici avec nous professeur José Antonio Ocampo pour cette lecture de l'Union de l'Université. Professeur Ocampo est professeur dans la practice professionnelle de l'Université de l'Université de l'Université de l'Université. Et bien sûr, le chef du Régional de l'Union et des Secretaires Généraux de l'Economie et de l'Union de l'Université. Et le Dr Finthop, notre directeur de l'Union des États-Unis, qui est basé en Finlande et l'Est dans l'Elsin Key, nous introduirons le Dr Ocampo. Je ne veux pas rester très longtemps, je vais être très bref. et je vais lui donner la parole à Prof. Fintar. Merci. Merci beaucoup, Jean-Marc. Excellences, les femmes et les gentlemen, mes collègues, je devrais commencer par dire, s'il vous plaît, mais nous allons maintenant aller au travail très sérieux. C'est un privilège absolu et une grande honne pour moi d'être ici aujourd'hui et d'introduire à vous Prof. José Antonio Ocampo. Prof. Ocampo donnera la lecture du 14e anniversaire qui a été l'une des principales événements du calendrier anniversaire. C'est vraiment un de nos efforts pour essayer de mettre en place les problèmes de majorité sur l'agenda de développement global et qui est plus approprié pour faire que Prof. Ocampo. Jean-Marc m'a mentionné Prof. Ocampo est professeur de la Université de Colombie, mais il a eu un nombre de postes très seniors avant son appartement à Colombie. Il était le secretariat de l'Université des Nations de l'Economie et des Affaires Sociales. Il était le secretariat de l'Economie, et le caribien, Écloc. Il était le ministère de Finance et de la Crédits public, le chairment de la Board de la Banque de la République. Il était le directeur de la planète nationale et le ministère de la Planète. Il était le ministère d'Acriculture et de Rue de développement et de plein de autres seniores positions. En effet, une carrière distincte sur le côté académique, sur le côté de la politique dans l'UN. En addition to that, José Antonio Campo is a great colleague. He is the author of numerous books and articles on macroeconomic policy and theory, economic development, international trade and economic history, and his latest books include Growth and Policy in Developing Countries, a Structuralist Approach, Will Lance Taylor and Kudri Narada and Time for a Visible Hand. Lessons from the 2008 World Financial Crisis was Stephanie Griffith Jones and Joe Stieglitz. I think these titles suggest that Ocampo is at the front line of the core debates about the international financial and monetary architecture. Would you kindly join me in welcoming Professor Ocampo today? Let me thank Fin for this kind invitation to deliver this 14th annual wider lecture. Let me say, let me start by saying how important the work of this institute of the United Nations University wider. The very important role that it has played in development and in the work of the United Nations. I can say that both in my academic career, my early life and my current life as well as in the intermediate period in which I was a UN official I had the opportunity to work very closely with wider. The early years of wider made it a very respectable meeting place for academics working on development issues and it has remained like that. I think the record of publications excellent meetings and support to the United Nations debates that is in the record of why they make it really a unique institution within the United Nations family. I like to underscore in particular two things that I find very interesting about the history of wider. The first is the pluralism that has characterized the work of wider. You can see there different approaches to development debates through the years just by looking at the list of people who have preceded me in this podium. You can see the plurality of views that can be expressed through this institution very much in the spirit of the United Nations. And second and equally important the capacity of wider to convene not only researches from industrial countries on development issues mais even more so researches from the developing countries. I had the opportunity to meet many people from the start of wider 25 years ago in the wider meetings in which I had the opportunity to meet many Latin Americans, Africans, Asians with whom I have the opportunity to interact through the years. I also really honor and privilege and I must add proud to be able to deliver this lecture today after the so many brilliant economies who have preceded me in this podium. So thank you Fintar for this invitation today. I'm going to talk today about the monetary and financial architecture and I must say in particular about the monetary part as you will see the financial part has been subject to more debate. This is actually quite a very interesting time. It is quite clear that this crisis has not finished just you read the papers today you will see that there was a run on government bonds worldwide yesterday which is one of the many reflections as well as the events in Europe and in many other parts that we are still living through the effects of this crisis that started let's say in mid 2007. So we have more than 3 years going on and as I will try to show as the crisis has proceeded more and more issues have been put in the agenda. So let me start let me divide the presentation in 3 parts I'll start with the context then I will talk about the substantive issues of the reform agenda and finally about the governance issues which are equally important for this purpose. So on the context let me of course start by underscoring the fundamental fact that this crisis has revealed again that we have dysfunctional monetary and financial governance that the rules on which financial globalization is taking place are inadequate for the magnitude of the interaction among countries that takes place in our era. But this is not the first time we are discussing this Actually after the Asian crisis but you can say even before after the Latin American debt crisis or even before after the collapse of the Bretton Woods system in 1971 the issues of the reform of the international monetary and financial system have been on the agenda and the fact is that it is a collection. Actually my own contact with this issue that I am going to talk today came precisely in my early days in the United Nations when the group of UN institutions got together to propose actually an agenda for international monetary and financial reform that was put out actually in January of 1999 and I was co-ordinated that job So at that time many of the issues that I am going to talk today were clearly in the agenda and the UN was one of the institutions that pioneered many issues that only with time have been recognized as central to the reform effort So I must say that I think the United Nations and I'll come back to this at the end must have a place in this dialogue and a place that sometimes has been recognized for instance most notably in the Monterrey Conference of Financial Development but or last year in the summit that took place in June on the global crisis by which sometimes it's not clear recognized by all actors So I think this is a very important issue that I want to discuss So the Asian crisis in particular generated a set of many very important initiatives but many like I said, most were not materialized into action So this is an opportunity to describe the fact that the industrial countries have been at the center of the crisis I think it's a great opportunity to rethink seriously this whole architecture Now when you think of this issue there are two clear overriding objectives The first one is the objective of macroeconomic stability In the world in which we live which is a world it's an international system that is a system which is sterilized on nation states on which nation states are the main actor in economic policy The main task is to give some level of coherence to policies adopted at the national level So that's the main task of macroeconomic stability and of course the capacity to prevent crisis and to manage crisis when they occur that threaten that monetary stability And the second is financial stability in a sense you can think of as a subset of the macro issue but this relates in particular to the financial system Now in the history of this that I will present very briefly it is quite clear that in the design of the global institutions after the second world war it was monetary stability that prevailed and where there was a more copious architecture that was put in place in particular through the creation of the international monetary fund financial stability in contrast was received very little attention in fact no attention and this was of course no accident because the international financial system had essentially disappeared during the crisis of the 1930s so the great depression actually eliminated financial globalization and it would only take it would take 3 or 4 decades for an international financial system to come back into existence so it was only in the 1970s that you can think that the issue of how to regulate or how to manage financial globalization was first put in the agenda with a significant lack essentially because the main development of this was called the euro dollar market in Europe of course and later the euro currencies market had only really taken off in the 1960s so it was only in the 1970s that this issue was recognized now the two of course are closely linked and we know that because most of the macroeconomic instability is associated to crisis in the financial system as we know the we are living through one such occurrence but there have been many many more in the past even before of course the creation of the institutions that have been designed to do that what is interesting about the way the crisis has evolved is that the agenda has increasingly broaden when you think of the initial crisis and particularly the financial meltdown that took place in the world after the collapse of Lehman Brothers in September of 2008 that led to these actions under the leadership of the group of 20 to re-regulate finance so there has been a lot of effort to do that but also to revive an instrument of international cooperation that was undergoing deep crisis which was an international monetary fund including not only the creation of credit lines many credit lines as we will see but also the revival of this very peculiar institution on which I will focus a lot of attention later on which is this special drawing rights the special drawing rights is a funny name I will say for for the only international money that we have is actually a money that can only be used let's say by central banks and in the dealings of central banks with the IMF but it's not used broadly it's not used in private markets but it's an international money created by the IMF the same way in a sense that central banks create money at the national level and I think that as you will see one of my main focus is how to make that international money more useful for the international monetary system and I think that's a great part of the reform agenda that has to be analyzed now in the most recent second phase of more recent origin which is the one that took place a few months ago there was this talk about the currency wars the term that was used by the Brazilian finance minister to refer to this volatility of currencies the flood of money towards emerging markets that is taking place and the exchange rate problems that they have been creating in developing countries to excessive appreciation of the currencies of developing countries now that brought into the light the need to do more things particularly the need to correct current accounting balances there is a balance of payments of countries which was the subject of the debate in the last meetings of the IMF and the last meeting of the group 20 in Seoul but also brought into light the issue that maybe we also need to regulate more the capital flows across countries because it's a very peculiar issue that the G20 took the the regulation of finance in a very serious manner but the regulation of cross border finance let's say the take place of cross borders is an issue that has not been in the agenda of the group of 20 so I think the currency wars brought the fact that you have a problem with the exchange rates and you have a problem with capital flows across countries now you have in addition the crisis of the European periphery and the many debates that have taken place around that crisis which have brought into the agenda at least two other issues the first is the issue of the importance of regional institutions because the European finally reacted with creating a stronger regional institution to help manage the financial system I'll come back to this issue and also I'm very importantly brought back an issue that had been in the agenda repeatedly but which is subject to a repeated amnesia also which is the issue of how to manage over indebtedness of countries how to restructure, reschedule depths of countries when they have gone into crisis so this issue which has been in the center of the European debates also was discussed in the IMF in the 2001-2003 under the proposals made by the IMF at the time but it had been in the agenda before after the Mexican crisis of 1994 so it's a repeated issue that has come into the agenda in a sense the fact that the world does not have an international bankruptcy court and the management of bankruptcies is part of market economies so you need institutional mechanisms to analyze and to manage bankruptcies but that doesn't exist at the international level which is the problem that is again put in the agenda during the crisis and then finally and very important is the issue of global monetary reform as such this issue was put in the agenda in March of last year by the Chinese central bank governor and also by this commission convened by the President of the General Assembly of the United Nations on international monetary and financial issues that was headed by Professor Stiglitz of which I was a member and which put in the agenda the issue that global monetary reform that is the role of international money versus national monies it has to be also a very important issue to discuss and it's very interesting that this is the topic that the French presidency of the group of 20 has put at the center of his agenda for next year so there are going to be a series of meetings to discuss exactly international monetary reform now if you think of the history it is very interesting because then you can see the elements of what came into being and what is being what are the main elements of the international monetary architecture that we have the debate started of course during the second world war and particularly among the United States and the United Kingdom that finally led to the creation of the international monetary fund and the World Bank at Bretton Woods now the proposal that was put in the agenda by Keynes at the time in the name of the UK was that the essential problem of the international monetary system is the fact that it places the whole burden of adjustment during crisis on deficit countries so deficit countries have to adjust surplus countries do not have to adjust and that asymmetry is an essential problem in the international monetary system I mean you can see it today I mean this is why Greece and Ireland have to adjust in Europe but Germany the surplus country does not ok so that is exactly the problem that comes back repeatedly during crisis and so Mr Keynes in the name of the UK proposed the creation of what he called an international clearing union which was essentially a sort of central bank of the world to simplify that in which surplus countries will be forced to finance the deficits of deficit countries so as to allow a smooth adjustment and to put part of the burden on surplus countries now Mr Harry Dexter why the US negotiator of course said not of that idea for one simple reason because it was clear that after the second world war with the destruction of Europe the only surplus major surplus country in the world was going to be the United States so that meant that the United States would essentially finance in an unlimited manner the European deficit so that discussion between the two positions is what led to the creation of the international monetary fund and let me see what are the the essential characteristics of that arrangement I will summarize in five features the first is that there was a global monetary system global reserve system base on a dual monetary standard the dollar and the gold with the dollar dollar ties to gold at the fixed part the second was a system of fixed exchange rates that could however be adjusted when there was this equilibrium in the payments of countries it's interesting that it was fixed exchange rates not floating exchange rates that we had later on for one simple reason because the 1930s had been a period of for floating exchange rates and there was a sense that there had been a lot of competitive devaluations that countries have used monies to gain a comparative advantage in international trade and for that reason floating of flexible exchange rates were seen actually as a bad idea to design an international monetary system and that's why the system was based on fixed exchange rates but that could be adjusted so it would not be like in the gold standard that had prevailed up to the first world war in which countries could not change their parties among each other so it was a partially flexible system but essentially based on fixed exchange rates the third element of that was that any country could control in any way the capital movements so that there was no free capital movement and for what reason basically because that will increase the capacity of countries to manage their monetary policy so that was the third element of the system, capital controls in any way any country wanted and actually outside the United States the major part of the world economy western Europe used capital controls extensively up to 1990 so it was a long period in which they actually used capital controls in an extensive way even the United States used capital controls at several periods in history that are now a bit forgotten but the President Nixon established a very interesting interesting equalization tax which is not unlike what the Brazilians are doing today when they put the tax of capital inflows so it's actually a very similar system also used by the United States the fourth element is that during crisis since countries in crisis will be unlikely to have access to capital markets then there will be some limited financing by the IMF so that emergency financing was part of the system and finally there was a mechanism for macroeconomic policy coordination which was very loose it included this monitoring of countries policy to the IMF but not real macroeconomic policy coordination now this system collapsed in 1971 when the United States decided to abandon the parity with gold that had been established at Bretton Woods and then we had a different arrangement that arose which has many many different features from the system that was in place before and this is essentially the system that we have today so the first one is that the center of the system will be a totally incompatible currency the United States dollar now with no conversion for gold as in the old system so an incompatible currency was at the center of the system the second is that countries were allowed to use about any exchange system they wanted so the fixed exchange system was abandoned altogether actually among the major currencies the system that has prevailed is a system of flexible exchange rates so in a sense back to the 30s rather than to Bretton Woods ok this is of course the basic problem because as in the 1930s and this is why the decisions in the IMF about how to manage exchange rates have always pointed out that countries have to avoid manipulating their exchange rate to increase competitiveness and this is a subject of a lot of debate, this is the center of the debate on the currency wars about whether countries are actually manipulating their exchange rates on the the current system that is the same debate of the 1930s that eventually led to the abandonment of flexible exchange rates the third is that although it was never decided actually when the US and the IMF tried to publish free capital movements in the Hong Kong meetings of the IMF in 1997 they were defeated so they essentially in principle can still manage their capital flows control them as much as they want in practice by the pressure of markets and even by the pressure of conditionality in the IMF programs and even the World Bank programs countries have ended up with a significant level of capital account liberalization the fourth is that the idea of emergency financing continue to be in place but the size of the IMF became increasingly small relatively to the demands generated precisely by the mobility of capital we have a system in which there are credit lines but they were seen as increasingly sufficient for a world in which there is much more capital movement than before this is the issue that came with very strong force during the Asian crisis and came again during this recent crisis leading to a significant reform of the credit lines of the IMF the fifth element of this arrangement is some limited macroeconomic policy coordination but that take place outside the IMF through a mechanism that I call elite multilateralism so the leading countries decide to organize themselves outside formal frameworks first in the G7 now in the G20 but that take place outside the formal institutes because they are the leading countries I call them elite multilateralism so elite multilateralism has actually been the way macroeconomic coordination has taken place and you can think of several phases in history it took place during the early post-war period when we have the problem that was then called the dollar shortage the fact that dollars were scarce given the the need of Europe to reconstruct itself the fact that Japan was still developing countries etc etc now that was solved in a bilateral way through Marshall Plan outside the IMF and outside the World Bank which had actually been created largely to finance the reconstruction of Europe and that's why it's called the bank for reconstruction and development the reconstruction part referring to Europe in the case of the World Bank the second it was the collapse of the Bretton Wood system of this dull color party in 1971 that itself again was managed outside the IMF through what was called the Smithsonian Agreement which in the case it was signed in Washington among the group of 10 which was a group of 7 plus 3 smaller European countries very important for financial issues then we had the crisis of the 1980s generated by the excessive appreciation of the dollar in the first part of the 80s that led to these 2 accords the plus accords signed in New York and the Louvre accords signed of course in Louvre to manage the orderly depreciation of the dollar and very importantly an appreciation of the yen which is why Japan was in a sense forced to appreciate this currency which is a very important present of why China doesn't want to follow that step because many analysts including me considered that that was the end of the Japanese boom that accords and that's why China doesn't in a sense want to go that way in its current dealings of its currency problems and finally Europe itself manage its problems outside the IMF of course building at the end its own institutions so in the post world period there was this European excuse me the creation of the European payments union and then after the collapse of the fixed parties in 1971 there was the creation of the European Monetary System to manage the problems of fluctuations of Europe it never accepted among its members a flexible exchange rate system so they eventually said they had limitations on flexibility that eventually led to the creation of a unique currency among most of the countries and this is very important because this could be in a sense one way in which the exchange rate system of the world can't be redesigned in something similar to what was calling the early 1970s the snake sort of flexible but flexibility within some constraints that was arranged about European currencies ok let me skip this global financial stability to go into the second part of the lecture which is what is that we think should be the design of the system and I call this comprehensive yet evolutionary reform because what I think what is characteristic of the system that we're living through is that the seeds of reform are coming from inside so there are many things that have been done or are being done on which we could be built a very different system and that's what in a sense my proposals are here and that's why I think they are realistic because they come from things that countries are already doing I think it's interesting about these proposals so for that you need in a sense relating to the functions of the international monetary system you need five essential elements which I want to focus in a gradually in my presentation the first you need a system to make national policies consistent among each other ok so that they contribute to global macroeconomic stability and particularly avoid this problem of competition through exchange rates that is they avoid the currency wars ok second you need an international monetary system that contributes to world stability and that is seen as fair by all the parties third you need regulation of capital flows across countries of some sort of the global regulatory reform fourth you need to improve the emergency financing during crisis and finally you need an international that work out mechanism that is a mechanism to manage crisis of some countries so let me see what this means in practice in the first area that is the area of macroeconomic policy my in a sense my simple proposal is bring the issue back to the IMF not the G20 so in a sense the G20 should give back this function which is a fundamental function of the IMF in a sense replace elite multilateralism by some form of formal multilateralism in the IMF that may have some deficiency that we have to improve on but which is at the end a system in which all countries have a voice you know through the constituency on which the board of the IMF is formed there have been interesting presidents of this and actually the most important president was precisely the creation of this international money the special drawing rights in the 1960s which is interesting because it started as initiative of Europe outside the IMF and the United States insisted that it be discussed within the IMF and it finally was approved within the IMF and why because actually the US saw that developing countries were an interesting partner in the debate vis-à-vis Europe and that's why the special drawing rights was the major monetary decision of the world that has taken place within the IMF itself there was also this attempt in 2006 to manage multilateral surveillance through the IMF which was a failure and now in the under the G20 you have this mechanism by the IMF is assist what is all called consultative mutual assessment process of the G20 so the which is a very peculiar arrangement in the SOAR because is a formal multilateral institution at the service of elite multilateralism which is not quite the best principle of international cooperation than we can think of so that's why I think the best way to do this is to just give the IMF the function of multilateral consultations in macroeconomic policy and then of course there was the broader revival of the IMF with the return of industrial country borrowing which had not borrowed from the IMF since the early 1970s so this was a very important event and very interestingly the more recent decisions which was the decision to double to make the issuance of a special drawing rights which is the largest in history 283 billion dollars last year and the doubling of quotas which was agreed just prior to the G20 so that's my proposal let's continue with the way it has been in a sense built by the G20 but within the IMF which is the best forum for that purpose now the global reserve system which is what is the international money and the relation between the international money and the national monies or regional monies in the case of the euro is of course the center the second problem of reform and that requires you know three sort of reforms to manage three problems that the system has the first is the problem that was highlighted by Keynes in the debates during the second world war that's why I call it the anti Keynesian bias the fact that the burden of adjustment is on deficit countries in other words that surplus countries don't have most to adjust a significant role so you have to give some role to the surplus countries in the adjustment process also the second is what has come to be called the Triffin Dilemma now the Triffin Dilemma is in honor of a famous Belgian economist Robert Triffin or Robert Traffin that made the most insightful analysis of the how the dollar gold system work back in his writings in 1959 and the essential problem highlighted is that when you use a national currency that is the US dollar as the international currency you have a problem why do you have a problem because in order to give international liquidity that is to give dollars to the world the US has to incur a deficit but the fact that the US incurs a deficit at the end may defeat the expectations of stability of the dollar so in a sense the system by which you provide international liquidity is a system that makes the central currency unstable ok that's essentially the point that was made by Robert Triffin and that's why he proposed that the system had to evolve into an international money which in a sense was the debate of the 1960s and that led to the creation to the special growing rise so that's the second problem of the system I will see some features shortly and the third problem is what I call the growing inequities of the system now where do the growing inequities arise they arise essentially because developing countries are subject to much more volatility in the international monetary system than the countries at the center historically this is still true today because despite the fact that the United States has been at the center of the crisis when there is a significant flight to quality as it is currently in this space money comes to the US so the US has in a sense no financing problem so far and hopefully never because that will be a major collapse of the international system but the countries in the countries that have some payments problems at different stages do have a problem of instability and capital flows have been very unstable for all developing countries in recent decades how did the countries respond developing countries they responded basically by accumulated foreign exchange research by a mechanism that has come to be called self insurance so there is no good collective insurance in the world let's each one of us accumulate research to protect ourselves against crisis that system actually has worked in one sense it has worked in that it has allowed developing countries to manage these recent crisis much better than before because they had a huge amount of research to protect themselves but of course it has a problem is that that effort by itself generates payments imbalances so you have to see how to manage the individual rationality of the system for each country but the collective rationality of the system which is what we in economics call the fallacy of composition so this is a thing that is good for one person or one country but that may be bad if everyone does that at the same time I mean the best case is actually the case of consumers which is the basic fallacy of composition it's good for one consumer it may be good to save more but if all consumers save more then we have a problem of demand and we have a crisis so this is in a sense the same the same problem but at the international level if each developing country accumulates research it's good for that country but if all countries are accumulating research at the same time we have a problem because someone has to be on the other side someone has to be having a deficit to compensate for the surpluses that countries have and here some of the manifestations I mean just see these are the dollar exchange rate in red and the deficit of the united states you see that the system has been characterized by increasing deficits and a large volatility of the central currency is the US dollar and this is what has happened to reserves you see back 20 years ago developing countries and industrial countries had the same amount of reserves of international reserves about 3% of GDP of gross domestic product but you see it since the crisis in the latin-american debt crisis and particularly since the Asian crisis developing countries reacted by accumulating loss of reserves so that industrial countries except for Japan continue to have about 3% of GDP but now a typical middle income country has about 30% of reserves and a typical low income country 25% of GDP of reserves so that developing countries on a massive scale have been self-protecting themselves which is this is of course good in the sense that developing countries have been able to manage crisis better but it's bad and why it's bad essentially because it implies that the US has to run a deficit in order to be for developing countries as a group to run a surplus which is how you accumulate reserves but then this became a problem because the united states deficit became a problem so this is part of the irrationality that we have in the system now during this crisis it's interesting you see developing countries use part of the reserves but then they started to accumulate reserves again so we are now in the middle of last year in another phase of reserve accumulation which is a natural response by developing countries to a system in which now capital are flowing again in massive quantities to developing countries generating appreciation of their exchange rates which they want to avoid because they know that from the past that every time their exchange rate appreciates and they run deficits they are likely to have a crisis which is a repeated history that has to be correct that's why the system has to be resolved in a sense 2 alternatives the alternative the initial alternative is what we can call a multi currency standard that is a standard based not on one national currency but on several national currencies which aside I guess from the US dollar it could be the euro in particular it could be the yuan you know very soon and the Chinese authorities are really working for that would be used as an international currency I mean I can think of in a smaller scale other currencies now that system has several advantages is more diversified so that you know is less prone to individual currency crisis that's good but it is equally inequitable because still the developing countries with the exception of China I guess if China becomes part of that system developing countries will still have to accumulate reserves to manage their crisis and we must remember that what is a reserve when do countries invest reserves they basically buy US Treasury bonds or German Treasury bonds so it's a capital flow towards the industrial countries that's exactly what a reserve is so it's a money that is invested by developing countries in industrial countries by developing countries central banks so it's a system it's inequitable in a sense the developing countries under this system is giving cheap financing to the US and to other industrial countries that's essentially what a reserve accumulation implies I know at the world level so that's why the the other alternative that I propose is a system essentially based on a special drawing rights so it's to make the IMF more like a central bank of the world with the capacity to create money on a larger scale like it did last year when it created 283 billion dollars in international money in special drawing rights but in which that international money can itself be used by the fund to finance crisis to finance crisis ok and how do I propose this in a very simple way countries are issued a special drawing rights so any old members of the IMF are given by the IMF this international money which is owned by the central banks of the whole world and then if they don't use that money they deposit it quote-un-quote in the IMF so they see like accounts of the central banks and with those deposits the IMF will be able to lend will be able to lend to countries in difficulties so you have a self-financing mechanism which is actually what all central banks of the world do and you think of the discussions on the US monetary policy that's exactly the point how does the federal reserve create money basically it lends to the US government it buys treasury bonds or it buys other private bonds in the market so in a sense it's a mechanism of financing so the creation of money of a modern central bank is a mechanism of financing that's exactly what I'm proposing for the IMF use a special drawing rights in a sense go into an entirely IMF based on a special drawing rights and use those issuance of special drawing rights as the main financing mechanism of the IMF now in that system you will have to correct certain asymmetries and particularly this basic problem that is developing countries that need reserves not industrial countries I mean one of the basic anomalies of a special drawing rights is that you I mean last year for instance about 60% of the special drawing rights were given to industrial countries including the US who don't need it while developing countries who do demand huge amounts of research for protection are only giving 40% of the special drawing rights so I say let's think about different ways and I propose in particular two ways the first one is that you have an asymmetric issuance so essentially you give well for instance you decide which is something proposal by a colleague John Wilson that give let's say 20% of the issuance to industrial countries and 80% to developing countries and then just allocate that those proportions according to the IMF quotas in the IMF of each group of each country within this group in one way so it's an asymmetric issuance give more of the special drawing rights to the country that really demand research which are developing countries that's one proposal but the other proposal is what I call a development link which is similar to a proposal that was made by a group of eminent economists too unctured in the 1960s when the discussion of a special drawing rights was taking place with the process of special drawing rights by or deposit that money or lend that money to the World Bank and the other development banks ok so one of the possible uses of a special drawing rights is actually lending by the IMF to the World Bank to the inter-american development bank to the Asian, to the African development bank and with that that money would be recycled into developing countries through those development banks second proposal so there's two alternatives and this is actually the proposal that was adopted by the Stiglitz commission last year so the second element of the system now the third element and I would say the more difficult is the exchange rate problems so to start with let me say that we don't have a system of exchange rates that's why I say we really have a non system of exchange rates essentially any country can choose exchange rate system you can choose a floating exchange rate system but you can fix your exchange rate when it's a floating it's the US versus the euro but you can also do the fixed exchange rates Hong Kong versus the US dollar totally fixed exchange rate or you can have intermediate systems you can put bands which you allow your currency to float you can have the whole system fix exchange rate and then manage move it during crisis so any country can adopt any system which is a non system a lack of a system and I think that is what is proving to be a problem particularly because the accusation that is being manipulated by countries has come at the center of the problem with of course the significant views about whether countries are manipulating their currencies or not let's say let's talk about the problem of the Chinese Yuan to be the major problem of that time but even more important the system has two basic problems first of all is not contributing to correcting global imbalances I mean that's quite clear by the facts it's not correcting global imbalances today but equally importantly it's very dysfunctional for world trade so what you have is a lot of unstable exchange rates and the instability of exchange rate is a tax on trade I mean you can think of it it's a tax on international trade actually that's what I learned when I was student of economics reading a very famous economist Charles Kinderberger who actually referred to flexible exchange rates as a tax on international trade that's why Europe never liked flexible exchange rate among its members because they know that when you have flexible exchange rates you cannot have a stable trade and European integration was obsessed with avoiding huge fluctuations of exchange rates and that's why they intervened so heavily and invented many ways of avoiding a flotation of exchange rates so we need a basic reform of the system which can have the first one is actually what was agreed by the J-20 in Seoul which is let's talk about some indicative targets on the current account so avoid countries from running large sur-process or large deficits in trade that's one way to proceed that's part of the solution I think to this but the other is the proposal that have come repeatedly through the years to stop something like the European Monetary System so a system that allows for some flexibility but within certain constraint bounds which is the system that has been called in different ways target zones by some or reference rate by others so let's think of a system that is less flexible is still flexible but does not allow the volatility but this is a problem is shown here this is the volatility of the exchange rate between the dollar and the euro ok and you can see here that we have had the peak level of volatility ups and downs of that exchange rate compared which is only comparable to the early part of that graph which is the European Monetary Crisis of 1992 so we do have a lot of instability in the euro dollar exchange rate that is you can think of excess volatility that has to be corrected because this is non-functional, I mean this is serves no purpose really for the global system so this is the second the third proposal on exchange rate the four proposal on capital account essentially say well let's think of a system in which not only you allow a capital account but you somehow try to make those restrictions collectively coherent why is this a problem because when one country regulates capital another country does not regulate capital it's only transferring in a sense transferring the excess money of the world to the other countries without restricting capital so in a sense the intervening one place makes again rationality for that country but may not be collective rationality so the problems are in a sense displaced to other countries and that's why I think the issue of cross border finance has to come into the world agenda and give light to some rules of some sort such as many that may are actually being practiced by countries and that make some sense as the IMF itself has recognized so I propose for instance three possible to start discussion that I think are quite rational to adopt which is allow for reserve requirements on capital inflows so the system that was invented by Chile that is practiced by Colombia and many other countries which is basically when you bring some capital into the country you have to put some money in the central bank ok? the second is establish minimum stay periods so eliminate the volatility by saying that capital can come in but has to stay one year before you take it out this is actually what the private sector does all the time I mean you bring money to a fund they will tell you you take the money out too soon I'm going to cut part of your money so you have the cost for getting out so this is essentially what I'm proposing here and the third and very importantly is to eliminate certain transaction for instance do not allow consumers who don't have revenues in foreign currencies to incur in debt in foreign currencies which is a typical problem it has always generated problems in countries I mean the most recent in central and eastern Europe where many consumers actually dèves in euros or other currencies and we have been a very source of progress so that's another block of the reform effort then still another reform is how you do emergency financing this is an area which many good things have happened already and you have essentially to continue on that among the things that have been adopted by the IMF in 2009 and 2010 we have all facilities double that you have a contingency trade lines that you don't use necessarily but you can get a loan sort of an overdraft facility that you get with your own banks so you have an overdraft facility you have a capacity to loan that you can use whenever is needed in the future you have a new framework for low income countries and the elimination of certain conditionalities in IMF lending but the problem is that the system is still seen as insufficient because as in the international debate IMF borrowing still carries a stigma because the view that you go to the IMF is because you have a problem and on top of that you're going to have conditionalities of the IMF and that's why I think this problem can only be solved by a sort of automatic overdraft facility of some sort so there is at least partial adoption of the reform that was suggested by Keynes in 1944 that is created an overdraft facility that any country can use up to a limit without any conditionality of any sort that I think will eliminate in a sense the stigma because when a private firm or a consumer uses his overdraft facility is not seen as a stigma is for borrowing and finally in the reform agenda in the sustainability reform agenda we need to solve the issue of debt resolution in which again we have a non-system today a non-system that it has a well structure mechanism the Paris Club for official debts but you have nothing really for private debts ok so you have to think of a different system in which both public and private debts are dealt with and you can think of many mechanisms of this sort actually the best try was done by the IMF in 2001 2003 which is the sovereign debt restructuring mechanism that didn't work among all reasons opposition by different countries by the US also some Latin American countries Brazil and Mexico opposed it etc so it was not approved but it was a very interesting try but it's also problematic for another reason because you cannot give that the management of that mechanism to a creditor the IMF is a creditor it gives lending a lender the capacity to manage the debt restructuring because it has an interest in the result of that restructuring and that's why you have to think of different mechanism one is actually to create the debt restructuring mechanism within the United Nations I think that's one thing that could be done but the other reason you want to give it to the IMF which is a thing that I have thought through the time is that you can do it independent panels that look at the problem of each individual country and try to give rationales something that is done with WTO for trade disputes so a similar mechanism to the trade disputes of WTO when there is a problem of one country then you create a panel that will serve as a negotiating or help the negotiations between the debtors and creditors and eventually it reaches a mechanism and if it doesn't reach an agreement it will decide on what agreement will take place and that will be enforceable in all courts ok so those are the elements I'll come back to the conclusion to mention again but these are the building blocks of this reform now let me finally give a few minutes to the issue of governance structures now the governance structure we have three elements that have to be taken into account the first one and the one that has been discussed more extensively is reforming the Bretton Woods Institution to make them more representative of countries and here as we know the major problem is the overrepresentation of Europe and the underrepresentation of Asia I mean to be straight and simple and that's the problem that has to be solved the Asian economies are much more important today than when the system of quotas of the IMF of the World Bank were adopted so we have to give and the European economies in turn have the opposite problem they are much less important today than when the system was adopted and there are other problems I mean there are problems of allowing the election of the IMF managing director and the world bank should be the president of the world bank should be free to any citizen avoiding the tradition that the IMF managing director is a European and the president of the world bank is an American which in practice means that there is no election as such the president of the world bank is usually designated by the US president and the managing director of the IMF is selected by the finance ministers of Europe and the system functions is not a better democratic system if you are a citizen from Japan you have no chance of being either but not to say you are a Chinese or an Indian or a Brazilian or a Colombian so you have no chance and you have other problems like the fact that you have an 85% majority rule in the IMF which means that the US which has 18% quota is the only country that has a bit of course you can also have a bit of a collection of countries and some countries get together and bit of some decisions in the IMF but the fact that the US has that majority by itself is a problem and then there are other problems that I don't have the time to deal with now the recent reform is the most interesting reform approved the one that was decided before the Seoul meeting of the G20 which is I think the most significant reform and I think it's a major step in the right direction what does it imply well first of all it's different for quotas and for voting power basically because the IMF does have a system which was improved 2 years ago by which each individual country independent of size is given a certain number of basic votes so the voting power is based on quota and those basic votes now in quota what happened the European basically lost accepted to lose 4% of the quota which is given to developing countries essentially and particularly to China and 5 other developing countries which are Korea India I mean Republic of Korea India Brazil, Mexico and Turkey ok so those are the 6 winners of the reform ok it's interesting that part of what they win because China wins 3.4% and the other 5 countries 3.9% part of that actually comes at the cost of other developing countries 3.4% ok it's a problem many developing countries lost in this negotiation including important countries South Africa for instance is one country that loses in the negotiation voting power is actually better developing countries win 5.3% and now the small the non 6 winners let's say lose only 1.4% I'm very interested in the low income countries which actually lose in quotas 0.3% win slightly in terms of voting power because of the basic votes so it's actually you can think of more reform but this is really has been a major effort so this area is taking care of the World Bank was also reformed this year in terms of its power voting power it's a significant move both are insufficient in my view but there are significant positive moves and the fact that this energy which we are moving forward but I would say the second issue and the most basic is how we manage this problem of the elite multilateralism so how we go from an institution that is self appointed non representative of the whole world and non institutional which is the G20 into something that has a better and more institutional structure so my proposal in this area is that the world has to starting by the G20 itself has to start seriously thinking about an institutional structure that is formal and admits the objective that the G20 has done the job that the G20 has done during this crisis which has been positive so the more I think of this the more I think that this structure has to have two features first of all it has to be headed in the UN but not in the UN organization but in the UN system including the World Bank and the IMF the United Nations system a fact that they don't usually recognize but it should be recognized so you put them as part of the UN system you bring the WTO into the UN system which for funny reasons was not made part of the UN system so you have a structure a sort of institutional structure to govern economic globalization let's say in the UN system so the my proposal it will be that it will basically support be supported by five organizations which are the UN proper the United Nations organization the World Bank, the IMF, WTO and ILO to take a major specialized agency of the UN system so that's the the essence of the and the second issue that it has to be based on a system that allows the most significant countries to be on the table but on an elected basis so you don't no country has the right by itself to be on the table so you have to think of a system in which let's say the important the economic importance of countries is recognized for the membership but at the same time all countries are represented and that's why at the end I think we have to think of a constituent system such as the IMF and the World Bank function so in which let's say my country, Colombia never sits on the IMF board but it's part of the constituency headed by Brazil so Colombia like Philippines which is also part of that constituency speaks through Brazil in the IMF board so but we have a voice an indirect voice but we have a voice so we have to think of something which is of course a very different institution because it will recognize two points the fact that you have a UN system but you also have different sizes of countries that you have to recognize because it is quite clear that you have an organization in which the major powers are not sitting on the table then the decisions of that body will not be taken into account by the powerful countries I mean which is the reality which has been recognized at the end in the creation of elite multilateralism so you have to think of something that is really a replacement of elite multilateralism by true multilateralism through something organized around the United Nations system and the third element which I propose is what I call a multilayer architecture which is essentially a system in which you recognize that you don't only need wall institutions but you have a dense network of regional institutions and sub-regional institutions and maybe inter-regional institutions which is what we have today in the world for multilateral development banks because in multilateral development banks we have the World Bank but we have the African, the Asian inter-american development banks and we have several sub-regional banks in Latin America we have three we have the Indian Development Corporation the Central American Integration Bank we have the Caribbean Development Bank and then we even have inter-regional banks the most important being the Islamic Development Bank so you have a system in which you have many institutions that are supporting now my idea is let's do the same for the IMF so let's think of a system in which aside from the IMF we have regional institutions that support that are part of one system and I think the two major steps are of course the Chiang Mai Initiative of Asia ASEAN plus China Republic of Korea and Japan the Latin American Reserve Fund and very interestingly the recent European agreements on their own monetary architecture so those are the three elements so let me conclude then by saying that the reform effort has to have two basic elements what I call a comprehensive yet evolutionary reform which is made essentially of five elements which I have presented one by one you have to have an IMF center macroeconomic consultation process so you replace the G20 by the IMF at the center of the system second you have a new reserve system basically based on a special drawing rights third you rebuild an exchange rate system in the ways I suggested you have a broader use with some international rules on capital accounts regulations so you put cross border finance as part of financial regulation and fourth you create an international debt workout mechanism so those are the five building blocks let's say the reform effort and you need an inclusive architecture which in my view requires three things first continuing the reform of the Breton Woods institutions second replace elite multilateralism by UN system organization and finally multilayer architecture with active participation of regional institutions thank you very much


وَأَقُولُوا فِي القُرْعَانِ مَا جَاءَتْ بِهِ آيَاتُوهُ فَهُوَ الْكَارِيمُ الْمُنْزَالُوَ وَأَقُولُوا قَالَ اللَّهُ جَلَّ جَلَالُوهُ وَالْمُصْطَافَ الْهَاديِ وَلَا أَتْ أَوَّالُوَ الحمد لله رب العالمين والصلاة والسلام على أبت الله ورسوله نبينا محمد وعلى آله وصحبه أجمعين سوف نتحدث today about keeping ties with the relatives that don't keep ties with you and how to manage difficult relatives and problems that happen among relatives أبي هوريرا narrated رضي الله عن أن رجلا قال يا رسول الله إِنَّ لِي قَرَابَ أَصِلُهُمْ وَيَقطَعُونَنِي وَأَرْسِينُوا إِلَيْهِمْ وَيُسِيُؤُونَ إِلَيْهِ وَأَحْلُومُوا عَنْهُمْ وَيَجْهَلُونَ عَلَيْ أمر يأتي إلى المسنجاء الله صلى الله عليه وسلم وقال لدينا رلوات أتبعوا معهم ولكنهم يتبعون مني أنا جيد لهم but they're bad to me ويأتي معهم الحلم is to not to get angry with them and not to say foolish words or not to overlook and to let things go and they treat me with great ignorance so the messenger of Allah صلى الله عليه وسلم said to him لَإِنْ كُنْتَ كَمَا قُلْتَ فَكَانَّ مَا تُصِفُّهُمْ أَلْمَلَلْ وَلَا يَزَالُوا مَاكْ مِنَ اللَّهِ ضَهِيرٌ عَلَيْهِمْ مَا دُمْتَ عَلَى ذَا لِكْ the Prophet صلى الله عليه وسلم said if it is as you say then it is as though you are feeding them with hot ashes and you will continue to have the help from Allah against them as long as you remain like that سبحان الله this is how we as Muslims are commanded to be to keep the ties with the ones and the relatives even if they don't keep those with us we're good to them and they're bad to us we're kind to them and they're unkind we're gentle and they're harsh we keep ties and they cut off we are required to remain in that state and as long as you remain in that state you'll be in that situation you'll have a help from Allah سبحانه وتعالى a help from Allah even against them a help from Allah and you'll be the one with the upper hand against them as long as you keep on responding to them in that way and the Prophet ﷺ described it as like feeding them in ملل رماد الحار it's like you're putting hot رماد hot ashes into their mouths and some of the scholars they said it means that they will it will hurt them that you're being so kind and so good to them even though they're being bad to you it's like they're the ones who are getting the negativity from it however the stronger opinion is that this refers to an إثم the sin that those people are getting they're going to get sin because they are being bad to you and you're being good to them they're you treating them well and overlooking and pardoning them and they're treating you with ignorance and roughness so they are getting the sin for it they are getting the sin for it and you are getting a help from Allah سبحانه وتعالى and the Prophet ﷺ even went to the extent where he showed us that keeping ties with relatives that cut off from you this is what is considered keeping ties عبد الله بن عمر ابن العاصر رضي الله عنهما narrated from the Prophet ﷺ he said ليس الواصل بالمكافئ ولكن الواصل الذي إذا قطعت رحمه وصلها أو إذا قاطعت رحمه وصلها عبد الله بن عمر ابن العاصر رضي الله عنهما narrated from the Prophet ﷺ that he said it's not the one who keeps family ties the one who does so reciprocally in other words one they keep ties with him so he keeps ties with them but the one who keeps family ties is the one that when his family cut off from him he keeps ties with them سبحان الله this is suitable to use as a قائد كلية a complete general principle in dealing with relatives family members with even with people in society with your friends with your coworkers with your neighbors with anyone that has a right over you and that's why Wallis is beautiful to bring it in this last lesson that we're going to be doing on this segment and the last lesson to finish the course إن شاء الله و تعالى that it is a قائد you can take it and you can have it as a principle to guide you in your dealings with other people that the one who really keeps ties with people isn't the one who does so when it's reciprocal the one that if they give he gives if they're kind he's kind if they thank he gives if they don't thank him he doesn't give you're not really what Islam tells you to do and if you do that with people and that's your methodology with people you won't be successful in your dealings with people you won't be able to keep good relations with people and you won't be able to interact with people you'll feel hurt by them many many times you'll feel hurt by them and you'll find that you have bad relationships with many people because your concept is if they give me I'll give them if they thank me I'll help them and that is not what Islam came with ليس الواصل بالمكافئ there's none of this issue of one for one and that's why we find in the Quran we only feed you for the sake of Allah we don't want any any reward or any thanks from you if you live your life expecting and waiting for people to reciprocate waiting for people to thank you waiting for people to give you waiting for people to be kind to you because you are kind to them then wallah take it as a mere guarantee that you're going to be disappointed and you're going to find that your relationships with people are poor and you're also going to find yourself down and depressed about people and your relationships with people the simple answer is forget about all the people and what they do for you what you do you do it for Allah do it for Allah and don't wait for people to thank you I can remember examples many examples where I remember this I came to my mind we don't want any reward or any thanks from you many times in my life where I can remember this and it came into my mind سبحان الله you did something and perhaps a person it's not that they didn't thank you perhaps they would insult you سبحان الله perhaps they would back by you you went out of your way to help a person and then the person the reward they gave you is they back by you to everybody after you went out of your way to help them and you get worked up by it and you start to say oh this person you know how could they do this after everything I've done for them stop إنما نطعمكم لواجه الله لا نريد منكم جزاء ولا شكور I don't want any jaza from you if I'll mash it do whatever you want I want my jaza from Allah سبحانه وتعالى I don't want your شكر I don't want you to say thank you I don't mind if you're grateful or you're not grateful of course if you do something good and they're grateful but that's not the purpose the purpose is what is with Allah so leave waiting for people to be good to you oh my relatives are so difficult because they're not good to me doesn't matter if they're good to you or not give your concern to what is with Allah but don't give your concern to what is with people if you always wait for this مكافة this one for one exchange reciprocal kindness then you're going to wait a very long time with the majority of any Adam there are some people who are people of إحسان and people who are people of أخلاق with good manners and good etiquettes all of those people will not let you down be in the light of Allah but most of the people you will find that you are good and they are bad you are kind and they are rude you are soft and gentle and they are harsh you do إحسان and they do إساءة to you you do good to them and they do bad to you that's what you're going to find from most human beings most people are going to be like that so never ever wait and remember this قارد this principle take it as a principle that you can live your life by everything with regard to your relationship with your spouse with regard to your children your parents, your relatives your colleagues, your coworkers your neighbors don't expect this everything you do will be reciprocated that they will do the same back to you they will give the same kindness to you and there is an ayah or a series of ayah which give an amazing methodology for dealing with a relative or a family member who you're finding trouble with them and difficulty with them الله عز وجل said ولا تستوي الحسنة ولا السيئة إدفع باللتي here أحسن فإذا الذي بينك وبينه عداوة كأنه ولي حميم وما يلقاها إلا الذين صبروا وما يلقاها إلا ذو حظ عظيم وإما ينزغنك من الشيطان نزغ فاستعذ بالله إنه هو السمير عنين the good deed and the bad deed on eco respond in a way that is better when you do so the one that there is enmity between you and them will become like your closest friend if you want to turn the one who is negative positive and you want to repair bridges that have been burnt down and you want to keep ties with your relatives even when they break ties with you إدفع باللتي here أحسن always respond in a way that is better and that's why you can take that principle and relate it to the statement of the prophet س. إملي سلوى سلوب المكافئ and also to the hadith that we heard before that أحسنوا إليهم ويسيون إليهم that I'm good to them and they're bad to me I keep ties with them they cut off from me I speak to them kindly with words of forgiveness and patience and forbearance and they behave ignorant towards me إدفع باللتي here أحسن be the one with the moral high ground be the one who responds in the best possible way someone treats you badly treat them well someone backbites you speak good about them someone says evil about you say good about them someone treats you badly treat them well someone causes difficulty for you try to make things easy for them إدفع باللتي here أحسن respond in the way that is better إذا الذي بينك وبينه عداوة the one that there is some enmity between you and them كأنه وليون حمي become like your closest friend like your best ally وما يلقاها إلا الذين صدروا but the people who get this you won't be.. not everybody is able to do this not everybody in fact the ayah indicates that a minority of people are able to do this not everyone has the توفيق from Allah to apply إدفع باللتي here أحسن respond in the way that is better وما يلقاها إلا الذين الصبعوا the only people who will be able to do this are the people of patience وما يلقاها إلا ذو حظين عظيم and the one that has a big giant portion of good from Allah that's the one who will be able to do it it's not easy for you and it's not easy for people to be able to respond to the one that is harsh and hard towards you with kindness to be able to respond to the one that cuts you off by keeping ties with them to be able to make ease for the one who made difficulty for you that's not everyone has the ability and that is سنة النبوية it's a prophetic methodology وما يلقاها إلا ذو حظين عظيم وما ينزغنك من الشيطان نزغن فاستعذ بالله and when you're trying to do this if the shaitan causes you to slip up the shaitan causes you to fall below your standards you had set for yourself إدفع باللتي here أحسن that's what I'm going to do I'm going to do it I'm going to do it I'm going to do it إدفع باللتي here أحسن that's what I'm going to do they treat me badly I'm going to treat them well إدفع باللتي here أحسن I'm going to do that but if you sometimes fall short sometimes you slip up and you didn't do what you wanted فاستعذ بالله seek refuge with Allah from الشيطان الرجيم عوذ بالله من الشيطان الرجيم عوذ بالله السميع العليم من الشيطان الرجيم إدفع بالله إنهو السميع العليم الله is the one who hears everything and Allah is the one who knows everything so this should be the way that we it should be the way that we deal with people it should be the way that we set ourselves out to respond in the way that is better and to be the ones with the moral high ground and to realize that not every time are you able to do this it's a success to be able to do this sometimes you slip up and when you do realize that this is from the الشيطان that it is something from the الشيطان that he put between you that you slipped up and you weren't able to respond in the way that was better and the way that was the moral high ground in the sight of Allah سبحانه وتعالى there is no doubt that this has some فق to it there are some areas where you have to understand this certain understanding and you have to apply your Islamic knowledge particularly when you overlooking and forgiving causes the person to increase in their because the Prophet سبحانه وتعالى said help your brother whether he's an oppressor or an oppressed and the Sahaba said we know a messenger of Allah if he's oppressed we should help him but what about if he's a violent and the Prophet told them to stop that person from their stop them from making fun so there are where you might have to take a slightly different approach if you see that your approach isn't helping that other person but still that approach will not go outside of because even by sometimes when you have to take a different approach or you have to remind the person or you have to give them advice you're still responding in the way that is better the way they're responding to you in terms of being ignorant and behaving in an ignorant way and you're responding to them by looking out for their interest trying to stop them from their volume and trying to help them to move away from the oppression that they are doing you have an excellent example in Yusuf عليه السلام remember when his brothers were jealous of him and they saw that their father يعقوب عليه السلام prefer Yusuf over them and they plotted and they kidnapped him they threw him into the well and they told his father that he had been eaten by a wolf and then Yusuf was taken into slavery and into Egypt and then into prison and then he came to be in a position of authority in Egypt and he saw his brothers and then even after that when his brothers said about him that he فقد سرق أخ لهم قبل that Yusuf they said that he had stolen before they said about his younger brother that if he stole then Yusuf his other brother used to steal before فأصرها يوسف في نفسه and Yusuf he kept it in himself and he didn't say anything ولم يوبديها لهم and he didn't expose it to them and then what did he say when he gathered his brothers together when they said to him أنك لأنت يوسف قال أنا يوسف وهذا أخي I am Yusuf and this is my brother what did he say there is no blame on you today يغفر الله لك may Allah forgive you وهو أرحم الراحمين and he is the most merciful of those who show mercy سبحان الله look at the sabr it said 40 years past between Yusuf having the dream that he told to his father and between the dream coming true of his father and his mother entering Egypt and they bowed to him and he said this is the explanation of my dream that came before they said 40 years past 40 years of sabr 40 years of what happened to Yusuf in that time and he said to his brothers يغفر الله لكم وهو أرحم الراحمين don't take no blame upon you today I am not going to hold it against you today may Allah forgive you and he is the most merciful of those who show mercy and any one who can implement that with their relatives and their family and can take that as their methodology as the prophet صلى الله عليه وسلم did with his enemies then this person will be truly truly successful and Allah سبحانه وتعالى will correct all of the problems that are between them and ultimately when you correct what is between you and Allah that's when Allah سبحانه وتعالى will correct what's between you and the people if your heart is sincere towards Allah سبحانه وتعالى رحم الله وتعالى كان العلماء وفي ما مضى يكتبون بعضهم إلى بعض هؤلاء الكلمات the scholars of the past they used to write to one another with these words من أصلح سريرته أصلح الله وعلانيته whoever corrects their inner self and their private self Allah will correct their public self and what is from the open and what is from the open ومن أصلح ما بينه وبين الله أصلح الله ما بينه وبين الناس and whoever corrects what is between them and Allah Allah will correct what is between them and between all of the people ومن أعمل لآخرةه كفاه الله أمر دنيا and whoever acts for their آخرة Allah will take care of their دنيا and I think that's a beautiful quote to end with and that brings us to the end of the course on the Muslim family سبحان الله we started off with this course intending to be fairly short and I remember we discussed it being only a few lessons a couple of weeks worth of lessons and Allah سبحانه وتعالى made it easy for us to cover the content that we covered and actually in reality there are many many more things that we could have covered many more things that could have been said and by no means is it comprehensive and by no means should it be seen as comprehensive actually there are many a hadith that we didn't cover and many statements of the Salaf al-Salih and we didn't cover many ayat of the Quran that we didn't talk about the Tafseer of them on these different topics but this is what Allah has made easy for us to mention whatever I said in this course that was correct and that is a grace and a blessing from Allah سبحانه وتعالى and whatever I said that was wrong and it was a mistake then Allah عز و جل and his messengers صلى الله عليه وسلم they don't have anything to do with that that shouldn't reflect upon Islam in any way there remains one segment of the course إن شاء الله وتعالى and that is a short Q&A بإذن الله يتعالى so we've asked the students to submit their questions to questions at amu.org and they've put in the subject the Muslim family no doubt that there'll be a cut-off point because there'll be people who will see this message late and they might send an email after it's already been done but there'll come a particular time a particular date, probably we'll leave a few days for people to send their questions about the course on the topic of the course things they might not have understood comments, even areas where I might have made a mistake if you're more than welcome send an email إن شاء الله and we will try to deal with all of that in a Q&A episode or episodes depending on how long it takes إن شاء الله وتعالى and that will be released some days after the final episode in the courses released which is this one that we're doing right now that's what Allah made easy for me to mention we ask Allah to bless us all in our families to correct for us our family ties to correct for us our spouses and our children to make us obedient to our parents and to make us from those who keep ties with their relatives we ask Allah to forgive us our mistakes that's what Allah made easy for me to mention and Allah knows best والصلاة والسلام على نبي إنه محمد وعلى آله وصحبه أجمعين السلام عليكم if you're enjoying these videos and you'd like to keep up to date www.mauathome.com


Hello everyone, welcome back to a new session in dentistry and more. Today's session is about dentine, so we will be covering this under a few sessions. So the first session is about dentine, its formation, its structure and little details about the dentinal reviews and second part is about various types of dentine and the last session we will be covering about the theories relating the dentine transmission of nerve impulses. So let's see one by one, so dentine as we all know it is a tooth layer basically the second layer of tooth which provides the bulk and general form of the tooth and it begins to form slightly before the enamel and it determines the shape of crown including the cusp and ridges and also the number and size of the roots. So let's get into the details of dentine. So dentine the heart structure of tooth just like enamel which is physically and chemically it closely resembles bone and it is said to be a living tissue. Then enamel is not a living tissue it is mostly a vascular, acellular but dentine is a living tissue since tubules present in it contains processes of specialized cell which are odentoblast okay so odentoblast so since it has odentoblast which is known as living tissue we can say that it is a living tissue unlike enamel. So main morphological difference between bone and dentine is that some of the osteoblast, osteoblast are the bone cells exist on the surface of the bone and when one of the cells become enclosed within its matrix it is called an osteocyte okay but the odentoblast cell bodies remain external to dentine okay but their processes exist within the tubules and dentine but the cell bodies remain external to dentine the osteocyte is not there in odentoblast there is no odentocyte in osteocyte it is nothing but when the cell becomes enclosed within its matrix okay but these odentoblast cell bodies remain external to dentine that is a basic difference between bone and dentine or we can say osteoblast and odentoblast we have osteocyte in bone which is enclosed within the matrix and stages of tooth development we have studied in detail the stages of tooth development in enamel it's almost same nothing is different only thing is the odentoblast which is giving rise to dentine first the inner enamel epithelium it influences the pulp to differentiate the odentoblast to form the first layer of dentine then dentine forms when dentine forms it in turn differentiate the amyloblast the inner enamel epithelium into amyloblast so once this dentine pre-dentine is formed the nutritional supply to the inner enamel epithelium is cut and the nutritional will be taken from the dental sac so this is the dentine which forms pre-dentine forms so it forms in the coronal part and even the root part so we have two types of dentine the coronal dentine and root dentine and this is a cervical loop so there will be proliferation at this area this will results in root formation and this is giving rise to hardwicks epithelial root sheath so all this we have covered in detail in the development of tooth and also in enamel chapter so coronal part I mentioned in enamel chapter in detail so the root dentine when the root formation proceeds the epithelial cells from the epith the cervical loop which proliferates apically and influences the differentiation of odentoblast from the dental papillae as well as cementoblast from the follicle okay this is a follicle this is dental papillae so we differentiate the dental papillae to form the root dentine and we differentiate the cells from the dental sac to form cementum so there will be deposition of root dentine and cementum so that is about formation of odentoblast or dentine so the structure of dentine basically the dentinal matrix of collagen fibers are arranged in network so it is arranged in a network and as this dentine calcifies calcifies the hydroxyapatite crystal mass the collagen fibers so the bodies of odentoblast they are arranged in layer on the pulpal surface of the dentine okay so bodies are arranged in so these are arranged this is the pulpal surface so this is the pulp this red color so bodies are arranged this is the pulpal surface okay this is the pulpal surface so the body the odentoblast odentoblast will be like with a projection and will be like this so this is the tail and this is the head part so the bodies of odentoblast arranged in a layer on the pulpal surface so this will be arranged in the layer on the pulpal surface on the dentine and only their cytoplasmic processes are included in the tubules in the mineral matrix okay so each cell will give rise to one process which travels the pre-dentine and calcified dentine within one tubule and terminates in a branching network to the DEJ or CEJ so it goes starts from the pulpal surface and it terminates here this is the enamel the otter most covering and it's it terminates at the DEJ or CEJ which is the root portion where cementum and dentine meets which is known as cemento dentinal junction in crown it meets with enamel which is known as dentino enamel junction okay now let's learn something about dentinal tubules which is basically the course of these tubules follow a gentle curve okay so the gentle curve so it is a double curvature and this is known as s-shaped curve so we have a s-shaped curve this is like this s-shaped curve and it starts at right ankle at the pulpal surface okay so this is a pulpal surface it starts at right ankle to the pulpal surface just like enamel it starts from right ankle to the dentinal surface so it starts right ankle at the pulpal surface and first convexity of this doubly curved course is directed towards apex of tooth okay so it will be like this so the first convexity towards the apex okay this is first convexity and this is second convexity so first convexity towards the apex of tooth and these tubules are perpendicular to d e j and c e j okay so d e j will be on the crown and c e j c not c e j c d j that is cemento dentinal junction this will be in root and d e j will be in crown and this is double curvature double convex and it has a shaped pattern so dentinal tubules are almost straight near the root tip at the root tip which will be almost straight and also straight at the incisal edges and c usps so dentine thickness ranges from 3 to 10 millimeter and the ratio between outer to inner dentine has 5 is to 1 that is outer has 5 tubules compared to the inner tubules ratio between outer to inner number of tubules is 5 to 1 the more tubules are present in the outer portion of dentine that is which is closer to the enamel and number of tubules per square millimeter varies from 15 000 at d e j but the number of tubules is lesser at d e j and more at pulp that is around 15 000 at d e j but 65 000 near the pulp surface so 5 is to 1 was the outer and inner dentinal surface ratio okay 5 is to 1 but this is number of tubules per square millimeter so number of tubules per square millimeter is very low or less than 50 000 or around 15 000 at d e j but it is 65 000 at pulp whereas the outer and inner surface of dentine is about 5 is to 1 okay so outer dentine has 5 with respect to inner dentine 5 times bigger outer dentine compared to the inner dentine and next we have the internal tubules and it has lateral branches throughout the dentine which is termed as canalicule or micro tubules and this enamel spindle we have learned in chapter enamel that is the odentoblast process okay so the odentoblastic processes which extends through the d e j into enamel several millimeters which is known as enamel spindle actually enamel spindle is not an enamel structure which is actually a odentoblastic that is a related dentine which which transfers or which enter into this d e j for few millimeter and it terminates enamel that is why it is known as enamel spindle this is odentoblast which extends from d e j extends through d e j into enamel okay so that is known as enamel spindle so next we have various types of dentine in next session we will be learning about types of dentine such as peritubular dentine, inter tubular dentine, pre-dentine and odentoblastic processes primary dentine, secondary dentine, tertiary dentine so all will be dealt in next session okay thank you


Now, Knights of Old Comic, Chichou, I know centralized government needs to change, but it's hard not to think this will be a better than the Trump... No, Knights of Old Comic, horrendous. If the... because we know who the DNC is, right? The Democrats, everyone's saying this, right? Everyone's saying this, that the Harris Biden, whoever, whatever you want to call this administration taking over, they're calling this Obama 2.0, right? It's the second Obama administration. Well, what did the first Obama administration do? They gave trillions of dollars at the time, the largest scam in world history, the largest bailout of Wall Street in world history. Wall Street bankers that collapsed the economy in 2008 put in power for the Obama administration. Citibank wrote the names of the people that were going to be running the Obama administration, basically, right? What did the Obama administration do globally? Oh, they started three new wars. They annihilated three countries, Yemen, Syria and Libya, and continued the wars that Bush Jr. had started. So if this is Obama 2.0, and it is, right? Why do people think this is going to be better than the Trump administration? Just because Obama was not a fat pig, right?  I'm not saying he is or not, but the people who are saying this is going to be better, is it because they detest Trump?   The hypocrisy is insane, right? He says America first, but his foreign policy is not America first, not by a long shot, right? Not even close, okay? But Obama 2.0, holy shit, that's not going to be better. And guess what? Obama, during the Obama administration, they started three wars that killed millions of people, right? The lowest estimate is killed hundreds of thousands of people, okay? The Obama administration did, right? Annihilated three countries, and the Obama administration was able to do this, and they didn't have a foothold, they didn't have control of all three branches of government in the United States, right? They didn't have complete control of the U.S. government, and they were still able to start three wars.  Look at the people they're putting into the administration.


Hi everyone, Joe for jazzy's casebreaks.com. We did it. We knocked out 2021 Panini, Oregon's football four box random team break number five One spot gives you two random teams all card ship obviously and the four boxes are from a fresh case big Thanks to this group here for getting in on it Let's double you up and All the teams are right there as well All 32 teams are in let's roll it. Let's randomize names and teams one and a five six times one two three four five and Sixth and final time Got Michael down to Andrew Roth One and a five six times for the teams one two three four five and six and final time After six times we got the ATL down to Arizona All right, Michael with the Falcons Steve with the Browns Michael with the Rams Andrew with the Lions Michael with the Bills Brian you got my Raiders Steve with the Saints Gale with the Buccaneers Brian with the Chiefs Matthew with the Jets Carl Ravens and Bengals Joshua with the Seahawks Andrew Roth with the Steelers Michael with the Panthers Carl with the Washington football team Matthew with the Cowboys Gale with the Texans Brian Croft Chargers and Giants Ethan with the Broncos Matthew with the Dolphins Carl with the Vikings Joshua with the Bears and Jags Matthew with the Colts Brian with the Titans Andrew with the Eagles Brian with the Packers Joshua with the Patriots Ethan with the Niners and Andrew Roth with the Arizona football Cardinals Let's get all this on one page. Let's alphabetize by column B and Feel free to trade if you'd like trade at your own risk and why you're considering trades Steve has the Browns and Saints available for trade I'm going to pop open this fresh case here and we're going to see which four boxes we're going to do in that Origins, so let's make stacks of four There's one two three four right here four right there and four right there You can see on the top camera as well. We'll go one two three four on the dice roll If I roll a fiver is six, we'll just roll again We'll use that die right there little lucky Dodger blue die there down five nothing which is not good, but Anything can happen Six will roll again Three one two three, so we're gonna do this stack right here and this we will save for next time so I'll Mark these with orange X's right here is just so we know that they're all from the same case And I'll post another one. I know it took a minute or two to do this, but I feel like we can run this back Feel like we can run this back fairly quickly They may be mixed up a little bit, but the X's will tell you they're all from the same case All right Now I'm gonna pause the video when we come back We're gonna see if there's any trades and then we will have the four box break stick around. I'll be right back All right, welcome back everybody the trade window is now closed and there was a deal done So Carl now has the Arizona football Cardinals Put a T next there for trade and Andrew is in the Viking spot now T next there for trade Let's print and rip I know I should be tailing you this week mark and your picks. All right, let's print. Let's rip. Good luck everybody and Once I'm done with this break. I'll post the next four box break We should be able to run this back tonight. These are pretty solid breaks boys and girls Pretty underrated Ballinger's only one doing the hitting. All right, here's the final printout hot off the presses Thanks, everyone for making this happen. I appreciate it This is merit this case was marinating for a little bit. So let's see what we find here in this break and future origins breaks be a be a fun thing to work on throughout the evening Let's get into the the autumn spirit here a redemption on the bottom We've got a Tyler lock into 299 for Seattle. That's going to be for Joshua We've got a Darius Leonard to 175 that'll be for Matthew Slate Colts a couple base cards here all card ship, of course Devante Adams Jalen waddle and And your hits the relic is to to Atwell for the Rams to 99 76 out of 99 for Michael and the Rams And that'll be for Michael the on-card auto is Dwayne Esquire's 27 out of 99 for the Seahawks Joshua with the Hawks of the seat and the redemption Good luck. Everybody is gonna be rookie jumbo patch autographs red. Oh, I think I know who this is our age Yeah, Remandry Stevenson. He's He's the notorious non-signer in this in this set. So that's gonna be for the Patriots That's gonna be for Joshua and a free top loader. All right next Fox good luck. All right. We got to 299 James Robinson for the Jaguars Joshua and Julio Jones 38 out of 79. He almost he's gonna pass the ball right there like he's a lefty quarterback Kind of a cool shot Titans that's gonna go to Brian last by Mojo and your two base cards here Antonio Gibson and Killin Hill The relic is Miles Sanders nice hometown roots Relic one out of 99 for Philadelphia Andrew S on the board The on-card auto is another Dwayne Eskridge for Seattle Joshua and we've got Till and Wallace three-color patch and autograph 71 out of 75 RPA for Carl and the Ravens Two boxes to go 95 out of 299 Khalil Mack for the Bears that's gonna be for Joshua the nice Darren Waller for my Raiders 36 out of 79 for Brian Croft last spot Mojo Two base cards here Hunter Henry Jamar Chase rookie card and your hits We got Travis Etienne two-color patch to 199 59 out of 199. That's for Joshua and the Jaguars Joshua and the Jacksonville Jaguars good alliteration there on-card autograph is Jamar Chase nice gold ink autograph 13 out of 25 That looks pretty sweet that goes to the bangles that is for Carl and Cincinnati. We're on Cincinnati Nice one and the RPA is Diami Brown Rookie Jersey and autograph for the Washington football team Oh nice base hit Dodgers finally on the board. Jeez It's a two-run single there you go, and that's for Carl and the Washington football team All right, and final box 80 out of 99 George Kittle Ethan with the Niners To 299 Sam Darnold Carolina that'll be for Michael the two base cards We've got Russell Wilson and Kenneth Gainwell In your hits. Good luck everybody final box your hits. We got a Mack Jones relic One out of 49 some nice color in their four color patch for Joshua and the Patriots The on-card auto will be Kyle Pitts for Michael and the Falcons It's got a pretty high ceiling pretty dynamic player Kyle Pitts Once he once he gets gets kind of used to the league this guy might be unstoppable unguardable Size mismatch all over the place Michael with the Falcons and last but not least is Is a Monras Saint-Brown for the Lions tried to trade couldn't trade mojo jersey and autograph for Andrew s and Detroit There you go boys and girls. Thank you very much everyone for joining the break for making this happen. I appreciate it I'm Joe for jazby's case breaks calm. Thanks for watching. I'll see you next time for the next football break. Bye. Bye