Consensus is not in favour of India as the Indian economy is not yet considered up to the mark
Despite intense lobbying for the last few years, India has lost its bid for admission into the influential Asia Pacific Economic Cooperation (Apec).
At their two-day Summit in Vancouver, leaders of 18 members of Apec, representing some of the worlds most powerful economies, admitted three new members: Peru, Russia and Vietnam. And they agreed on a ten year period of consolidation after which membership issues will be considered further.
The new members were admitted on the basis of a consensus, their normal procedure of taking decisions. Theres no voting on any of the issues. Obviously consensus was not in favour of India as the Indian economy was not yet considered up to the mark.
First indications were that India, along with two other countries, would be admitted as new members. Then organisers decided they wont have time because of economic crisis in South East Asian countries that would take much of their attention.
So the leaders were supposed to devise the procedure for admitting new members. Then suddenly the news come that they decided to admit three new members and the consensus was in support of Peru, Russia and Vietnam. When Prime Minister I.K. Gujral came to Canada on an official visit last October as then External Affairs Minister, he discussed Indias claim to Apec membership with Canadian Prime Minister Jean Chretien and Foreign Affairs Minister Lloyd Axworthy. He was assured of Canadian support in this regard. The meltdown of Asian economies changed the agenda of the Apec meeting. Instead of discussing free trade, Apec leaders, who included U.S. President Bill Clinton, spent a good deal of their time discussing the economic crisis in Thailand, Indonesia South Korea and Japan.
Malaysian Prime Minister Mahathir Mohamad, who also participated in the Vancouver summit, came out with a bitter attack not only on currency traders but on the evils of the unrestrained free market. He said evil currency traders armed with hundreds of billions of dollars had managed to wipe out two decades of Asian economic growth in just two weeks.
How can they do this and destroy the economies of so many countries and livelihood of so many millions of people, he said. The answer is free market. The free market allows them to do this. Mahathir said he would regulate the currency traders by making them register with governments and pay trading dues.
Despite all the attention given to the economic crisis in Asian countries, Apec leaders agreed to liberalise trade in 15 sectors, with work beginning on nine sectors - including environmental goods and services, forestry products and fish - in 1998, and implementation starting in 1999.
Their plan for financial stability is based on their last weeks decision in Manila where they recommended active support of the International Monetary Fund (IMF) in this regard.
They also agreed to work towards a successful conclusion of World Trade Organisation negotiations on financial services by the agreed deadline of December 12, 1997.
They agreed to assess the full impact of trade liberalisation, including its positive effects on growth and employment, and to assist members in managing associated adjustments.
We have advanced freer trade and economic cooperation in ways that will help secure future prosperity and stability in the region, said Chretien, who chaired the Summit.
