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Must ensure policy coordination to revive economic growth: PM

Last Updated: Thursday, March 29, 2012 - 13:27

Zeebiz Bureau

New Delhi: Addressing the 4th BRICS summit that kicked off in New Delhi on Thursday, Prime Minister Manmohan Singh said that we must ensure policy coordination to revive economic growth.

"We must avoid political disruptions that create volatilities in global energy markets and affect trade flow...We must ensure policy coordination to revive economic growth," he said.

The Prime Minister highlighted the need to create 10 million new jobs per year through next decade and pressed upon the need to address issues in expanding capital base of World Bank.

He also agreed to examine options of setting up of BRICS-led development bank.

Stressing upon the need for reforms of UNSC, the PM said BRICS countries should speak in one voice on such issues.

The PM said that the BRICS countries need to ensure success in Doha round of trade talks and urged the leaders of the participating nations to avoid political disruptions that hurt global energy markets.

To revive global demand and growth, developing countries need access to capital, particularly for infrastructure development. We must address the important issue of expanding the capital base of the World Bank and other Multilateral Development Banks to enable these institutions to perform their appropriate role in financing infrastructure development," Singh said.

Seeking improvement in global governance, the Prime Minister said BRICS should speak with one voice on important issues such as the reform of the UN Security Council.

"BRICS countries must also work together to address deficiencies in global governance. Institutions of global political and economic governance created more than six decades ago have not kept pace with the changing world. While some progress has been made in international financial institutions, there is lack of movement on the political side," Singh said.

He emphasised on the need to reduce energy intensity of GDP by promoting energy efficiency and developing clean energy sources. This calls for greater investments in research and development, sharing of best practices, and encouraging transfer of technology, he said.

He also urged the member countries as members of G-20 that they must together ensure that appropriate solutions are found to help Europe help itself and to ensure policy coordination that can revive global growth.

"As large and diverse economies, we should make a special effort to find ways to exploit intra-BRICS complementarities. We should promote greater interaction amongst our business communities. Issues such as easier business visas must be prioritised. As large trading countries, BRICS have a strong interest in removing barriers to trade and investment flows and avoiding protectionist measures," Singh said.

Leaders of the emerging economies - Brazil, Russia, India, China and South Africa have gathered in Delhi to discuss trade ties and several global issues.

With Agencies Input

First Published: Thursday, March 29, 2012 - 12:28
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