New Delhi, July 08: Prime Minister Manmohan Singh has said the current global financial and economic crisis has highlighted the weaknesses in the approach to financial regulations and demanded reform in the United Nations, including Security Council, to make it more democratic, creation of new global financial architecture and early conclusion of Doha Round of trade negotiations.
In an article written on ”How the World is Governed in the 21st Century–Vision of Emerging Power-India” in the publication brought out for the G8-G5, the Prime Minister said India would continue to fight against the scourge of terrorism and dismantling of its infrastructure on the basis of zero tolerance and also fight piracy on high sea.
He said India would strive to restructure the Bretton Woods Institutions to create a new financial architecture and early conclusion of the Doha Round of trade negotiations with its development dimension. Dr Singh said India wanted that the climate change issue be addressed on the principle of common but differentiated responsibility and respective capability.
The Prime Minister said the problems faced by the institutions of governance charged with handling the financial system were also relevant for other international institutions dealing with political and security issues, trade and climate change. ”They need to update structures and upgrade work methods, reform decision making and ensure effective delivery.
They need to adapt, adjust and accommodate to adequately reflect ground realities, contemporary aspirations and pressing requirements of developing countries like emerging economies,” he said.
Highlighting weakness in the United Nation Security Council with two-tiered membership, the Prime Minister said it was not only anarchronistic but also posed serious problem to its legitimacy.
He pointed out that the economies of the world were highly inter-connected due to which problem originating in one part of world economy quickly snowballs into a global crisis as highlighted by the recent economic slowdown.
Dr Singh said it also exposed the weakness in the approach to the financial regulations which emphasised light regulation and greater reliance on inhouse controls and market discipline to control.
”The issue has revealed the inadequacies in the existing domestic regulatory systems in the industralised countries and also in the international institutions set up to police these areas and to take remedial action when needed,” he said.
–Agencies