Since 2008 more than half of the world's population lives in cities

The measures announced so far in fiscal stimulus and the reforms of financial control systems are all necessary, but as long as their authors did not integrate is a long-term prospect, supported remedies fail to fully meet the diagnosis.

The collapse of financial markets was caused, essentially, by two factors: the obsession of profitability in the short term and the deep gap between choice of investments and real needs of the economy. Based on good regulatory systems, policymakers could find allies of weight with a distinct category of investors actually engaged in the long term and fix the two abuses mentioned, by helping to restore economic stability in the short term and by creating value for the next generation.

Given the rapid changes at work in our societies, think in the long term is a more urgent than ever need. Since 2008, more than half of the world's population lives in cities. At the same time alarming acceleration of climate change requires massive spending, encrypted by the British Economist Nicholas Stern to 2 of global GDP.

The achievement of overall objectives of long-term, such as the construction of infrastructure and the fight against climate change is not only an absolute necessity, it is also, in itself, a tool for recovery. The transition to a low carbon economy, the adaptation to the depletion of natural resources or rapid urbanization will call massive investments in innovation, renewable energy, sanitation networks, telecommunications and transport infrastructure. But these are areas that can generate a high ROI, complementary investments and, therefore, generate growth and jobs.

It is clear that these investments are essential for the future of our societies. But who will be able to fund National budgets already widely being mobilized by ongoing bailouts, it remains that few alternatives, unless it changes the regulations applicable to long term investors capable of meeting these challenges.

Who are these investors in long-term, is first of all whether the allocation of assets is little or less conditioned by short-term commitments. From this definition, there are several broad categories of long-term investors: the so-called "perpetual", as funds sovereign wealth funds and institutional investors with public mandates. public sector pension funds; and some insurance companies who required long-term commitments.

In an optimal control system, these "investors for the future" could play a positive role, complementing that short-term investors on financial markets. First, the coexistence of investors of long term and short term investors could help to mitigate the impact of future financial shocks. Long-term investors have the ability to smooth over their losses and profits, and, therefore, create counter-cyclical effects. In addition, commitment of investors in long-term perspective both the amount and duration of the investment gives the promoters over flexibility to invest in human capital and know-how which is generally complex and costly without risking being penalized by a short-term volatility.

In the current state of things, national and international financial regulatory systems do not favour the growth of this category of investors. The recent report of the European Union, led by Jacques de Larosière, shows how accounting and prudential standards applied until now, faithful to the "mark-to-market" rule, are systematically oriented towards short-term performance and, therefore, induce pro-cyclical effects for the less dangerous. Reform of the regulatory system, legislators must distinguish between long-term investors, a hand that can keep their assets even in times of financial crisis, and banks and mutual funds, on the other hand, who must now report to their shareholders and other stakeholders. Accounting and prudential standards should be adapted to the specificities of each class of investors to, inter alia, consistency recovery assets, and particularly their equity portfolio, and period of detention.

Such changes also involve greater responsibility on the part of long term investors. Control of tomorrow must not confine itself to creating a specific class of investors in setting out criteria defining long-term investors, but also need to clarify the responsibility of the latter to the shareholders or the public power, and set the requirements for own funds which investors will be subject.

To curb the volatility of financial markets, contain swelling debt publique and preserve the investment in infrastructure and development projects to ensure the prosperity of tomorrow, our political and regulatory decision makers need all the good wishes. Could begin by putting in place a framework more conducive to genuine long-term investors and better take into account the difference of the actors in short term.