IBSA calls FMs meet to counter global turmoil

Written by Political Bureau | New Delhi, Oct 15 | Updated: Oct 16 2008, 06:00am hrs
Blaming the rich countries for the unfolding global financial crisis that is impacting the developing world, India, Brazil and South Africa (IBSA) on Wednesday decided to instruct their finance ministers and governors of central banks to convene a meeting, as soon as possible, in order to establish a coordination mechanism.

Addressing a joint press interaction at the end of the IBSA summit in New Delhi, Prime Minister Manmohan Singh in his opening statement said, we have decided to instruct our finance ministers and governors of Reserve Banks to meet as soon as possible to create a coordinating mechanism, to meet the crisis.

Our voice on how to manage this crisis in a way that does not jeopardize our development priorities needs to be heard in international councils, Singh said.

The Prime Minister while acknowledging that the WTO negotiations have not moved as anticipated, said, We have agreed to send a message to the world that we are keen to resume the dialogue process. He also talked about the challenges posed by increase in energy and food prices and the problem of terrorism, saying these threaten our development effort.

Underlining the importance of IBSA, he said the forum was uniquely placed to cooperate in these areas.

Noting that India, Brazil and South Africa were dynamic developing economies located in three different continents, Singh said, IBSA has an important role to play internationally.

The South African president Kgalema Motlanthe on his first trip overseas after taking over the office spoke about the need for self-regulatory mechanism and underlined the need for improving governance of financial institutions. Brazilian President blamed the rich countries and irresponsible speculators for transforming the world into a gigantic casino and called for creating a new international financial architecture to deal with the crisis.