Spectre of recession threatens to disrupt eco development: PM

Anil K Joseph

Tokyo, Oct 23 (PTI) Taking note of "multiple challenges"
confronting the world amid a steep rise in energy and food
prices, Prime Minister Manmohan Singh Thursday warned that the
spectre of recession in global economy threatens to disrupt
the rhythm of economic development in many developing nations.

Singh, a noted economist, touched upon the raging global
economic meltdown during his address at a reception hosted by
the Japan-India Association and Japan-India Parliamentary
Friendship League at the end of his three-day visit here.

"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," he said.

The Prime Minister's remarks came a day after he said the
international financial crisis had revealed the extraordinary
vulnerability of the global financial system even in the
industrialised world.

"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 at a
gathering of Indian and Japanese business leaders Wednesday.

He had said that developing countries like India were
also affected by the crisis and had to be part of the
solution.

At the reception Thursday, Singh described India and
Japan as "two major pillars of new Asia", saying the strategic
partners were ready to play a "commensurate global role" in
world affairs.

"On the strength of our strong bilateral partnership, we
stand today as two major powers ready to play a commensurate
global role," said the Prime Minister, who Wednesday inked a
landmark security cooperation agreement with his Japanese
counterpart Taro Aso here.

He said India believed that "a strong and dynamic" Japan
was "a powerful factor" of peace and stability in Asia and the
world at large.

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

Significantly, the function was also attended by former
Japanese Premier Yoshiro Mori, who was instrumental in
transforming the bilateral ties with a landmark visit to India
in 2000.

Describing himself as a "frequent visitor" to Japan,
Singh said: "it has been my earnest desire for past several
decades, to see this relationship prosper and grow.

"I am very happy to witness today the transformation of
India-Japan relations. It is truly developing into a global
and strategic partnership as envisaged when Prime Minister
Mori visited India in 2000".

"In the past 60 years, we have broadened and deepened the
relationship into a durable and productive partnership," he
said at the event, attended by prominent members of the
growing Indian community in Japan.