Developing nations need to be part of financial solution: PM

Anil K Joseph
Tokyo, Oct 23 (PTI) Warning that a looming possibility of recession in the global economy threatens to disrupt the rhythm of growth in developing nations, Prime Minister Manmohan Singh Thursday said they should be made part of an overall financial solution as gains made in the last few years cannot be put at risk.

Noting that the international financial crisis has
revealed the extraordinary vulnerability of the global
financial system even in the industrialised world, Singh said
the world is facing "multiple challenges" which threaten to
squander the gains of developing nations, including India.

"The world is now facing multiple challenges. The spectre
of recession in the global economy, coming as it does in the
wake of steep rise in energy and food prices, threatens to
disrupt the rhythm of economic development in many developing
countries," Singh said.

"Developing countries like India are also affected by the
crisis and have to be part of the solution. We cannot afford
to risk the gains we have made in the last few years. Nor do
we wish to remain vulnerable to infirmities in international
surveillance, supervision and regulatory mechanisms in the
future," he said.

Winding up his visit to Japan, from where he flies to
Beijing to attend the Asia-Europe (A.S.E.M.) Summit starting
Friday, Singh said the turmoil in international markets has
to be prevented from turning into a "crisis of confidence".

"The crisis has choked credit flows and predictably
spilled over to the stock market. We have to prevent the
liquidity crisis from becoming a crisis of confidence in the
international monetary and financial system," he said.
PM-CRISIS 2 LST

India would be attending the Summit, which is set to be
dominated by the raging global economic turmoil, at the Head
of Government level for the first time.

On the sidelines of the Summit, Singh would have meetings
with German Chancellor Angela Merkel, Chinese President Hu
Jintao, President of Mongolia Nambaryn Enkhbayar, President of
Bulgaria Georgi Parvarov, besides Italian and Vietnamese Prime
Ministers Romano Prodi and Nguyen Tan Dung in a bid to promote
bilateral ties and exchange views on issues of common concern.

The leaders will focus their discussions on the
political, economic, social and cultural issues, including
those related to sustainable development.

"It will provide a very good opportunity for us to
exchange views on a variety of topics including, of course,
the present international financial situation," N. Ravi,
Secretary (East) of the External Affairs Ministry said.

A.S.E.M. is a grouping of 27 European Union Members, 10
A.S.E.A.N. members, the three North-East Asian members -
China, Japan and South Korea.

The Prime Minister, who inked a landmark security
cooperation agreement with Japan on his visit, said India
looked to the "wise counsel" of Japan in meeting the
challenges faced by the world.

"We look to the wise counsel and leadership of Japan" to
meet the challenges facing the globe, Singh said, adding that
New Delhi wished to draw upon Tokyo's vast developmental
experience and her traditional emphasis on "consensus, harmony
and balance in solving formidable problems that now threaten
global peace and prosperity". PTI A.K.J.