With the Group of 20 leaders scheduled to meet in Cannes a fortnight from now,the heads of government of India,Brazil and South Africa,who met today for the Fifth IBSA Summit,demanded more credible action by debt-ridden developed nations the United States and member-countries of the European Union to prevent the global economy from slipping into a double dip recession. In his opening address at the Summit today,Prime Minister Manmohan Singh set the tone for the trilateral forums position at the G20. He said,The sovereign debt crisis in Europe and recessionary trends in the US,Europe and Japan are sending negative signals to financial and capital markets which are showing signs of distress. He called for early steps by Europe and other advanced countries to avoid a hard landing for the global economy. India,Brazil and South Africa are members of the G20,besides being non-permanent members of the United Nations Security Council (for the first time since IBSA was conceived in June 2003). Stating that the three countries were playing their part to promote growth while containing inflationary pressures and ensuring fiscal discipline,the Tshwane declaration made after the fifth IBSA dialogue forum,put much of the onus of restoring order in the developed economies court. In his opening remarks,South Africa President Jacob Zuma said the summit was happening at a time when the world is going through trying times. We face yet again the economic crisis in the countries of the developed North. (this) is accompanied by a crisis in our mode of consumption and use of energy resources as well as food shortages, he said. Brazilian President Dilma Rousseff,who was attending the IBSA Summit for the first time since taking charge,said,We share concern about the economic crisis which is centred in the northern countries. We need a credible agreement to prevent the crisis from getting out of control and spilling into a global crisis. The three countries surpassed an intra-trade target of $15 billion set during the forums inception in 2003,achieving $16.1 billion in 2010 and on track for a 2015-target of $25 billion. Noting that downside risks to the global economy have heightened in recent weeks,IBSA leaders called for calibrated fiscal consolidation in countries with high debt and measures to strengthen domestic demand in countries with large surpluses. They also sought more responsible conduct by reserve currency issuers,particularly the US and the European Union,in evolving a more stable and resilient international monetary system. Their policies can have a disproportionate impact on global liquidity and capital flows, the declaration noted. Prime Minister Singh said developing countries cannot remain untouched by the negative impacts of these developments. Their ability to address their developmental challenges has been adversely affected, he said. IBSA must coordinate its positions in the run up to the G-20 Summit in Cannes to ensure that the priorities of the developing economies are adequately reflected,he added.
