Make globalisation an inclusive process: PM

Cambridge, Oct 11: Prime Minister Manmohan Singh today expressed concerns at the behaviour of some developed countries who allow short term national interests to prevail at the cost of promoting freer trade and combating poverty.

"The prosperity of so many cannot be sacrificed for protecting the interests of so few. The price of myopia is heavy on the exchequers of the developed world and the issue has profound moral dimensions", the Prime Minister said in his acceptance speech at the Cambridge University, which conferred the Honorary degree of Doctor of Law on him.

Taking a dig at the developed nations, the Prime Minister said the reach of globalisation is yet to touch many parts of the world. Moreover, the evidence suggests that the process has not removed personal and regional income disparities. In many developing countries growth rate is by-passing the rural areas. Also, in the face of stagnation in their real pay, the working classes in industrialised countries are becoming fearful of the opening of their countries' markets.

Observing that the gap between the rich and the poor is widening, Dr Singh said this, coupled with the inability of the public sector to provide adequate and quality services in health and education, and cater to the needs of the poor, is causing resenment and alienation. " This is nurturing divisive forces and putting pressure on the practice of democracy".

The Prime Minister's 15 minute acceptance speech was applauded by senior academicians, professors, members of university council. The hour-long ceremany held at the Senate Hall of the university was one of the most dignified ones in the history. The Duke of Edingurgh, Prince Philip, who is also the Chancellor of the University, conferred the degree on the Prime Minister.

Dr Singh said a very significant feature of the global economy is the integration of the emerging economies in world markets. In fact, the weight of global economic activity is gradually shifting to these emerging economies, which now account for more than two fifths of world exports compared to a fifth 25 years ago.

In many parts of the world, especially India and China, the per capita incomes are doubling or expected to double every decade, Dr Singh said, pointing ot that this would lift millions of people out of poverty. ''This pace of change is unprecedented, far exceeding what was witnessed during the Industrial revolution in Europe. Freer trade and financial inflows in the world as a whole, are helping to contain inflation, keep interest rates low, and sustain higher levels of investment,'' he said.

He said in India, the economic reforms, initiated in early 1992, had made the economy more competitive.''Indian business is responding to new market oportunities and the growth is underpinned by a vibrant and growing entreprenurial class. ''Indian youth is keen to get into technical and scientific institutions helping India gain prominence as a knowledge-based economy. India is now on growth path of seven to nine per cent per year while maintaining price stability. The proportion of people living below the poverty line is declining, he said.

The Prime Minister said it was a matter of deep concern that the Doha Development Round of Trade negotiations had reached an impasse. ''If trade is to be an instrument of combating poverty and spreadign manufacturing capacities more evenly in the world, it is vital that barriers to the export of agricultural goods from developing countries be eliminated. Nearly two third of the population of developing countries live in rural areas and in the developed world, this falls to less than ten per cent,''he noted.

Dr Singh said that to convince people in poor countries of the benefits of globalisation, we must take a more enlightened view in liberalising trade in services and labour-intensive manufacturing, in which developing countries are competitive.

"I see trade not only as a means to prosperity, but also as peace-building. Collectively we need to devise an enlightened approach in approaching negotiations over the reduction of harmful gas emissions, intellectual property rights (IPR) in the production of life saving drugs and transfer of technologies that help to combat poverty and such issues. Prosperity is not divisible. Neither is global peace possible without the eradication of poverty,'' he said.

As democracies, we must also stand together in making governance across the world more democractic,'' the Prime Minister said, adding that India, as a democracy, aspires to a world in which global institutions are more democratic and representatives of all people of the world.'' The governance process of global institutions of today reflect the realities of the world as it was more than half a century ago, he observed.

UNI

Related Stories