Sinha issues caution on globalisation

DAVOS, JAN. 31. India today warned that globalisation could lead to economic destablisation and said world leaders should take steps to ensure equitable growth in developing countries.

``Globalisation should subserve the cause of equitable growth and human development,'' the Union Finance Minister, Mr. Yashwant Sinha, said cautioning that unless this was achieved ``opposition to globalisation would become more vocal''.

In an informal gathering of senior political leaders attending the 30th World Economic Forum meeting here, Mr. Sinha said there was therefore a need to pursue the right domestic policies especially in the financial sector besides undertaking prudent debt management projects.

Urging the world leaders to take responsibility of ensuring equity in globalisation, Mr. Sinha said the problem of democracy should be appreciated and fears arising out of globalisation should be allayed so that goals of higher growth and employment were achieved to bring down the level of poverty.

Regarding the new round of multilateral trade negotiations under the World Trade Organisation, Mr. Sinha emphasised that there was a need for more deliberations at the official level to arrive at a consensus.

``More work is needed to be done at the official level (in Geneva) and a lot more legwork'' before contemplating a WTO ministerial meeting to finalise the next round of multilateral trade negotiations,'' he said. The Finance Minister also emphasised the need for ``more flexibility'' among the developed countries to provide market access to developing countries exports.

Mr. Sinha mentioned the South Asian Association for Regional Cooperation (SAARC) agreement on a free trade zone by April 2001 and called for more cooperation among Asian countries in the area of trade.

The informal meeting was attended among others by the Chinese Vice-Premier, Mr. Wu Bangguo, the Thai Deputy Prime Minister, Mr. Supachi Panitchpakdi, the Indonesian Minister for Investment, Mr. Laksamana Sukardi, senior officials from Japan and South Korea and the heads of several top companies.

- PTI, UNI

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