CPI Member of Parliament D Raja has called for reform of multilateral institutions to ensure "full" participation of developing countries so as to achieve "genuine" coordination to effectively meet global financial crisis.
"Clearly, in the global economic realities of today, traditional responses involving select developed countries cannot deliver the results," Raja, also the national secretary of CPI, told the financial and economic committee of the UN General Assembly yesterday.
Stressing that a comprehensive reform and democratisation of the 'Bretton Woods Institutions' (International Monetary Fund and World Bank) are indispensable, he told the delegates that the reform must enhance the voice and participation of developing countries in these institutions.
"The steps taken so far have been inadequate, and must be intensified," he said and called for the UN overseeing the process of reform given its "unique role and legitimacy."
Referring to the current global financial crisis, Raja urged the developed nations to take effective steps to ensure that their commitments on financial front to the developing countries are not diluted.
In fact, Raja said many developing nations would need additional international support to address the impacts of the financial as well as food and energy crises.
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In this context, he reminded the rich that the crises did not originate in the developing nations but are likely to feel its impact through overall slowdown in the economic growth.
Even before the onset of the current financial crisis, Raja stressed, developing countries did not enjoy an international environment conducive to development.