PM calls for new, terror-free world

SHARM EL SHEIKH: Prime Minister Manmohan Singh on Wednesday sought a tough stance against terrorism and called upon NAM countries to agree on a comprehensive convention on international terrorism.

"In recent years, terrorist groups have become more sophisticated, more organised and more daring. Terrorists and those who aid and abet them must be brought to justice. The infrastructure of terrorism must be dismantled and there should be no safe havens for terrorists because they don't represent any cause, group or religion," he said while addressing the 15th session of the NAM in this Egyptian Red Sea resort town. This assertion of the prime minister has clearly set the tone for the upcoming talks with his Pakistani counterpart.

In his address, Mr Singh said the grouping of developing countries would lose its relevance if it refuses to take an unambivalent stand against terror. "We respect each others path to development, distinct cultural traditions and national priorities. Extremism, intolerance are our antitheses; they seek to destroy us and our movement," he observed.

At the meeting that takes place in the backdrop of economic recession, the economist prime minister used the opportunity to drive home India's point about the need for a new international financial architecture that relies on the participation of all countries.

He said the developed world cannot shirk off its responsibility as the ongoing crisis emanated from the advanced economies. "It emanated from the advanced industrial economies and we have been the hardest hit," he stated.

Mr Singh said that in this difficult situation, protectionism should not have any place. He said protectionism has been reducing developing countries��� exports, besides choking credit and capital flows to the Third World.

"With the benefits and burdens of globalisation so unfairly distributed, it will be harder for our economies to cope with the crisis. If the aftermath of the crisis is not carefully managed, and if the abundance of liquidity leads to a revival of speculative activities, we may well see a period of prolonged stagflation," warned Mr Singh.

The prime minister said the NAM has a great stake in ensuring that steps planned to revive the global economy take into account the concerns of the developing countries. "These include the challenges of food security, environment and reform of institutions of global governance. They are embedded in the economic crisis and must be dealt with comprehensively and with a sense of urgency."

Mr Singh also sought to drive home his point about the need for a rule-based multi-trading system. "We have a crucial stake in a rule-based multilateral trading system and in an early conclusion of a balanced and fair agreement in the Doha round," he noted.

The prime minister���s call for a new international financial system got the support from NAM members. Mr Singh said it was time that global financial institutions adopted a new approach as they continued to be based on charters written more than 60 years ago.

"Developing countries must be fully represented in the decision-making levels of international institutions if they are to remain effective and have the legitimacy they need to play their role in an increasingly integrated world."

Opening the summit, Cuban President Raul Castro also made the same point. Calling for a new international financial system, Mr Castro said it should provide "preferential treatment" for developing nations to contain the effect of global recession. "We demand the establishment of a new international financial and economic structure that relies on the participation of all countries."

"There must be a new framework that doesn���t depend solely on the economic stability and the political decision of only one country," the Cuban leader said, employing the country���s traditional US bashing.

Mr Castro later handed the movement's presidency over to Egyptian President Hosni Mubarak, whose country will head the group for the next three years.

The summit's draft declaration called for the group to coordinate with China ��� attending the summit as an observer ��� to have their voices heard at international financial institutions like the IMF and the World Bank.