Delivering the Jawaharlal Nehru Memorial lecture here, Silva said an International Monetary Fund report in April suggested the combined economies of developing countries will surpass that of the developed countries.
"The world's political order should reflect this reality and not the balance of power after World war II," he said and added countries of Latin America and Africa and an important country like India should find a place as permanent members of the United Nations Security Council.
Vice President M Hamid Ansari, Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi were among those present at the lecture.
Silva said the global financial crisis of 2008, the impact of which was being felt till date and especially by the more vulnerable countries in Europe, required a rethink about the governance and economic system across the globe.
"Crises and deadlock, when they occur have also this advantage, they force us to think," he said quoting Nehru.
"Free market does not have a magic wand to regulate themselves," Silva said and added more regulatory measures were required than measures like "austerity and bank bail-outs."
Also Read
The former Brazilian President stressed the need for developing a new psyche of sustainable development based on inclusion of poor citizens and marginalised population.
"In my country, this was the path that led us to sustainable development. The poor were not seen as problem but part of the solution," he said. (More)