PM: global institutions must be representative

>> Friday, November 21, 2008

India will emerge stronger from the global economic crisis and global institutions must be made more representative of developing nations, Prime Minister Manmohan Singh said on Friday.

In speech to a conference, Singh said the world had become more interdependent and the voice of developing nations must be heard in the high councils of global decision-making.

"Global problems require global solutions. This is the most important lesson of the past century for the present century," Singh said.

"But global institutions of governance must be made more inclusive and representative," he said, according to a text of the speech.

Singh took part in a summit in Washington last weekend with leaders of the Group of 20 nations to discuss how to tackle the crisis which has shaken financial markets worldwide, frozen credit markets and pushed some major economies into recession.

He said the G20 meeting was the first time developing nations' voices had been heard with respect in a global forum and said there was agreement that recourse to protectionism was no remedy.

Indian authorities are struggling to shore up growth against the impact of the global financial crisis and have taken a host of steps including sharp rate cuts to fend off damage to the broader economy.

Singh said the world was in a deep crisis but despite an adverse international environment India had the capacity to sustain a growth rate of about 8 percent.

"We will, through the use of fiscal policies, through the use of monetary policies, through the use of public investment, ensure that the shortage of demand coming as it is from the global slowdown is neutralised to the maximum possible extent," he said.