India calls for co-ordinated action to deal with financial crises
merisarkar news service New Delhi, October 18, 2011
PM with Jacob Juma & Dilma Rousseff
Cautioning that the Eurozone crisis could affect the developing countries, Prime Minister Manmohan Singh on Tuesday asked Europe and other advanced economies to take "effective and early steps" to prevent the global economy from slipping into a double-dip recession.
He also said that India-Brazil-South Africa (IBSA), three leading emerging economies, were united in their efforts to address the deficit in global governance and pressed for enlargement of the UN Security Council to reflect the present day reality.
"The sovereign debt crisis in Europe and recessionary trends in the traditional engines of the global economy - the US, Europe and Japan-- are sending negative signals to world financial and capital markets which are showing signs of distress," Dr Singh said addressing the plenary session of the IBSA Summit in Pretoria.
"Developing countries cannot remain untouched by the negative impacts of these developments. Their ability to address their developmental challenges has been adversely affected," he said.
"We hope effective and early steps will be taken by Europe and other advanced economies to calm the capital and financial markets and prevent the global economy from slipping into a double-dip recession," Dr Singh added.
With G-20 summit in the offing in Cannes early next month, Dr Singh said IBSA countries should cooridnate their positions in the run-up to it to ensure that priorities of the developing economies are adequately reflected in the deliberations of the grouping.
The economic and financial crisis being witnessed in the West was one of the main issues of discussion at the 5th IBSA summit along with reform of the international institutions of governance and the UN.
"We stand united in our efforts to address the deficit in global governance. The United Nations Security Council must be enlarged in order to reflect present day reality and to make it representative and effective in responding to global challenges," Dr. Singh said.
