By IANS,
New Delhi : Ahead of the G20 summit later this month, India has underlined the need for developing “better surveillance and regulation” to tackle the global financial crisis and stressed “a bigger voice for developing countries” in international financial institutions.
“There should be better and transparent regulatory mechanism for capital markets as well as a stronger voice for developing countries,” External Affairs Minister S.M. Krishna said at the IBSA meeting of the ministers of India, Brazil and South Africa in Brasilia Tuesday.
“The global financial and economic crisis has made it imperative to develop a better system of surveillance and regulation so as to detect early signs of systemic financial and economic imbalances and instability to address them effectively in a timely manner,” he said.
Singling out the failure of global regulatory and supervisory mechanism, excessive speculation and greed as key causes of the global financial crisis, Krishna said the developing countries, including emerging economies, are the worst affected victims of the meltdown.
It would push millions of people back into poverty for one full generation, he said.
Krishna said that the crisis has brought the dynamic economies of India, Brazil and South Africa closer and stressed that greater cooperation amongst the three IBSA countries “can be a game-changer in today’s circumstances”.
The IBSA could be “an effective example of successful and meaningful South-South Cooperation”, he said.
Prime Minister Manmohan Singh will be participating in the G20 summit of major and emerging economies in Pittsburg, US, Sep 24. The meet will focus on collective action to spur global economic recovery in the aftermath of the worst recession in nearly seven decades.