US Treasury Sec pleads case of devp economies

Washington, Apr 15: US Treasury Secretary Henry Paulson made a strong pitch for emerging-market countries, urging the International Monetary Fund (IMF) to re-invent itself by giving more voice to such nations.

Addressing the International Monetary and Financial Committee (IMFC), the policy-making body of fund and the joint World Bank-IMF Development Committee, Paulson said, "bold action is needed to overhaul the structure of the IMF and to boost the share of emerging market countries." He said those countries with fast-growing economies, such as China, will increasingly drive global wealth in the future.

The treasury secretary also called for progress on the Doha round of global trade talks.

Later, the IMFC, which comprises 24 developed and developing countries, including India, stressed the importance of avoiding trade protectionism.

Reserve Bank of India Deputy Governor Dr Rakesh Mohan was present on the occasion.

British Finance Minister Gordon Brown, who presided, stressed the urgent need to complete the long-stalled Doha talks to expand world trade.

"In these last few weeks first of all there has been a formal agreement to resume the trade talks. Secondly there has been a meeting of the group of four (US, EU, Brazil, India) in Delhi-and that is the four major negotiators. And third Pascal Lamy came today to the International Monetary and Finance Committee to tell us that in his view it was possible to move quickly to a deal," he said.

It agreed that officials from China, Japan, Europe, the United States and Saudi Arabia should continue to discuss ways to remedy the trade and financial imbalances that many experts believe pose a threat to global stability.

The IMFC, in a statement, welcomed the resumption of the Doha Round trade negotiations, and called on WTO members to work with a renewed commitment to urgently achieve an ambitious outcome.

Benefiting from the report by WTO Director-General Pascal Lamy on the current status of the negotiations, the Committee looked for strong political leadership from those countries now playing a central role in the negotiations to forge the necessary breakthrough.

The Committee emphasized that all members stand to benefit from a Doha Development Round outcome that promotes growth and fosters economic development by reducing trade barriers and strengthening the multilateral trade system.

The Committee considered it critically important to ensure that the benefits of globalization were widely shared and help reduce poverty and income disparities.

UNI