IBSA urges reform of global financial institutions

October 15th, 2008 - 4:10 pm ICT by IANS  

Manmohan SinghNew Delhi, Oct 15 (IANS) Blaming the rich countries for the unfolding global financial crisis that is impacting the developing world, India, Brazil and South Africa (IBSA) Wednesday joined hands to push for reforms of the UN, G8 and international financial institutions. “IBSA has an important role to play internationally. We are meeting against the backdrop of the international financial crisis,” Prime Minister Manmohan Singh said while kicking off the third IBSA summit that brings together the three economic powerhouses from Asia, Africa and Latin America.

“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,” Manmohan Singh said in his opening remarks.

“We need more than ever before a renewed effort to reform the institutions of international governance, whether it is the United Nations or the G-8,” he added.

Hailing IBSA as “an effective model of South-South cooperation,” Manmohan Singh also underlined the need for greater cooperation among the three countries for the satisfactory conclusion of the Doha round of trade negotiations “in a manner that promotes development and inclusive growth.”

“The increase in energy and food prices and the challenge of terrorism threaten our developmental efforts,” he added.

Manmohan Singh also suggested scaling up trilateral IBSA trade to $25 billion by 2015.

Calling for creating an new international financial architecture, Brazilian President Luiz Inacio Lula da Silva blamed the “rich countries” and “irresponsible speculators” for transforming the world into “a gigantic casino”.

Underlining the need for making IBSA more “agile and efficient,” Lula stressed that the grouping needs to speak in one voice on global issues, including UN reforms.

In a similar vein, South African President Kgalema Motlanthe, who is on his first trip overseas after assuming office, spoke about the need for self-regulatory mechanism and underlined the need for improving governance of financial institutions.

“The ill-conceived decisions of the few have brought the international financial system on the brink of collapse. There is a need for improving governance of financial markets and institutions,” he said while stressing that a solution to current global woes will emerge “from the South.”

A “Delhi Summit Declaration” will also be adopted at the end of the conclave. The three countries are also expected to sign seven MoUs, agreements or action plans

Armed with an NSG waiver, Manmohan Singh will also discuss civil nuclear cooperation with leaders from Brazil and South Africa.

The summit will focus on improving connectivity and enhancing trilateral cooperation across a wide spectrum of areas, including food and energy security.

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