Thaindian News

New Delhi, Oct 24 (IANS) Commonwealth countries are mulling trade pacts, debt financing flows and technological cooperation to beat the global financial crisis.

Diplomats of leading Commonwealth nations who interacted with leading economists and technocrats here said the Commonwealth could throw up initiatives which could help them battle the financial crisis better.

At a discussion on ‘Global Economic Crisis: Can India and Commonwealth Show The Way’, they discussed regional trading, financial flows as well as technological cooperation initiatives.

The discussion was organised by the Commonwealth Journalists Association (CJA), the India International Centre and the Working Group on Alternative Strategies ahead of the Commonwealth meet at Perth later this week.

Bangladesh High Commissioner Tarique A. Karim said that while “not being responsible for the global financial crisis, developing nations, especially the least developing ones, have had to face the trauma” of the downturn.

A presentation by Ramgopal Agarwala, former World Bank advisor, showed that the former colonies were uniquely placed to work towards high income convergence through a web of mutual cooperation.

M.G.K. Menon, scientist and president of the India International Centre, said trade between Commonwealth countries amounted to $4 trillion — which proved that the grouping remained relevant.

The share of intra-Commonwealth trade has grown steadily from around 12 percent in 1990 to around 16 percent in 2008.

India buys $53.15 billion of goods annually from Commonwealth members — and sells $39.65 billion of goods.

India’s exports to Commonwealth countries amounts to 21 percent of its total exports. Imports total nearly 17 percent.

Suhas Borker, chair of the Working Group on Alternative Strategies, added: “The Commonwealth has to re-invent itself tackle the global economic crisis.”

High Commissioner Dato Tan Seng Sung of Malaysia pointed out that in the current financial crisis, it were the developing nations which were taking steps to help address the global situation.

India, Britain, Canada, Australia and South Africa make up a fifth of the G20 grouping, which has taken over much of the functions of the earlier G7 of managing the global economy.

Between them, the G20 grouping controls some 80 percent of the world’s economy.

Nigeria’s Deputy High Commission O. Kuku underscored the role of his country in the context of Africa that is home to many of the Commonwealth nations, most of them least developed.

Mahendra Ved, president of CJA, said: “It makes sense for Commonwealth countries to build on their complementarities to work together for an economic and trading block” that could rival the European Union in GDP.