FINANCIAL GLOBALISATION/63
George Soros is an exception to the secrecy rule. The Hungarian-
American Soros heads the Quantum Fund and was one of the driving
forces behind the attack on the European Monetary System in the
summer of 1992. He pocketed SI billion by speculating against the
British pound. Like a gambler, he also loses from time to time - for
example, in January 1994, when he lost S600 million. In 1995, he
published a book in which he describes how he has run his operation
in strict accordance with the relevant laws (Soros, 1995). In this
interview-style book, which he commissioned, he raises the alarm
over the dangers of unrestrained deregulation. The book is an
instructive read. On the occasion of its release in France, Soros
declared:
Many people feel that markets are the best way to share out
resources and create a balanced situation. I believe the opposite is
true. I do not believe in market perfection. Measures have to be
taken to stabilise the market, otherwise there will be dangerous
developments, especially since imbalances are cumulative. I feel
markets aren't sufficiently monitored and that there should be
tighter regulations. Broadly speaking, market mechanisms have
come to play too great a role in our societies. I am not a fan of
laissez-faire. (Le Monde, 2 November 1996)
Such declarations did not hold Soros back from playing - according
to the Malaysian prime minister - a vanguard role in attacks on
various Southeast Asian currencies, the Thai bhat and Malaysian
ringgit in particular. According to the Mexican daily El Financiero (2 8
July 1997), on 26 July 1997 Malaysian Prime Minister Mahathir
Mohammed openly accused Soros of secretly organising speculative
attacks which, from July onwards, led to a depreciation in the value
of Southeast Asian currencies. Soros denied any such involvement.
El Financiero relates other declarations from Mahathir:
He called on the international community to consider the
speculative attacks on Southeast Asian currencies a crime. 'This
will happen again, that is why we consider it to be a crime,' he said.
He said that as long as the international community did not take
steps against such activities, the currencies of developing countries
would continue to be sabotaged and their citizens would continue
to live in poverty.