Doha trade talks should stick to development mandate: PM

NEW DELHI: Prime Minister Manmohan Singh has cautioned that the Doha round of global trade talks cannot succeed if it did not remain true to its original mandate of being a development round. “We cannot continue to live in a world of butter mountains and rivers of milk liberally funded by government subsidies, when the poor starve in the villages of the Third World,” Dr Singh said.

Addressing a seminar on ‘making globalisation work’ on Monday, the PM pointed out that everybody knew that subsidies distorted trade. In the case of agricultural subsidies, offered by developed industrial economies, it not just distorted trade but destroyed lives. “We must find ways in which trade aids development to ensure that globalisation works for all. This is the challenge before the leadership of the developed world,” he said.

While economists have paid attention to the economic consequences of globalisation and the management of economic globalisation, not much attention has been paid to the politics of globalisation and its political management, the PM observed. He said that the United Nations could have been a political instrument of managing globalisation, but so far it has not succeeded.

“It will not be able to succeed unless it reforms itself as an institution and its own management is more democratic and more representative,” Dr Singh said. “Old ways of managing global affairs, wherein a single digit group of nations could constitute themselves into a global board of management, are over. There are of course, a few big powers, and these will continue to exercise global influence. But we must learn to work with nations big and small,” the prime minister said. The meet was jointly organised by Ficci and Shri Ram Centre for Industrial Relations.

Stressing on the importance of good governance in a globalised world, Dr Singh said that even in a wholly globalised and integrated world, people in democratic societies expect governments to deliver on their basic needs, both economic and social needs.

While the private sector will increase its role and bring prosperity to newer generations of entrepreneurs, professionals and workers, the government will be expected to step in and provide a range of services.

The PM added that private capital flows will go only where risk is quantifiable and reward is tangible. “While globalisation has enabled increased flows of capital from the developed world, people expect governments to invest in public goods,” he said.