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G-5 countries agree to aim at restructuring financial regime

world Updated: Jul 09, 2009 01:51 IST

A summit of G-5 countries, including India, representing major emerging economies, on Wednesday decided to pursue their goal of immediate restructuring of international financial architecture, ensure greater credit for developing countries and to carry forward goals for climate change in favour of developing economies.

In a joint declaration at the end of their summit ahead of the G-8 meeting tomorrow, leaders of India, Brazil, South Africa, China and Mexico, the current chair of the G-5, reaffirmed their commitment to pursue global solutions to the problems especially battling the current worst international economic crisis.

Reading out from the declaration, Mexican President Felipe Calderon said the new international architecture they see would allow balanced participation of developing counties in financial matters.

Prime Minister Manmohan Singh, in his remarks, said the developing countries have been the worst affected by the weakened global economy and the worst financial and economic crisis.

"We discussed how we could contribute to strengthening the green shoots of recovery. It is only through an inclusive approach that a collective global effort can be effective," he said.

Singh said that at the G-8 summit tomorrow G-5 leaders would stress the importance of maintainnig adequate flow of finance to developing countries and also of keeping markets open by resisiting protectionist pressures.

The developing countries were also the worst hit by high food prices. "We agreed that food and secuirty need to be placed at the core of the international agenda," he said.

Singh said as responsible members of the international community they recognised their obligation to preserve the environment. But climate change cannot be addressed by perpetuating the poverty of developing countries, he said.

"The concept of sustainable development has so far been a buzz word. We need to evolve a strategy of growth that brings about a higher standard of living without harming the environment. Technology has to be the key element to our global strategy in dealing with the climate change. We will be hosting a conference on technology development and transfer in climate change in Delhi in October this year," he said.