Countries should be free to decide economic course: Malaysian PM

CHENNAI - Countries must be allowed the flexibility and space to determine their economic course even as the world is moving towards globalisation and economic integration, Malaysian Prime Minister Mohamed Najib bin Tun Abdul Razak said Saturday.

“We must work towards a rules-based system where wealthy nations will not overpower developing nations and where rules facilitate growth and greater economic integration,” he said at the 16th edition of Partnership Summit organised by Confederation of Indian Industry (CII) here.

Razak’s speech was read out by Malaysian Minister of International Trade and Industry Mustapa bin Mohamed as he cut short his visit due to the death Friday of the Sultan of Johor.

According to Razak, globalisation is about change and the ability to respond to change.

“Countries differ in this regard and there should be flexibility on how we assess their ability to promote economic integration across borders.”

Terming globalisation as a value-free process that does not differentiate between beneficial change and change that impoverishes human conditions, Razak said it has to take a large part of the responsibility for the spread of the current financial crisis across the globe “thereby calling for re-assessment of the real cost and benefit of globalisation”.

He said globalisation is a process and a tool and it is for the countries to establish its purpose and the outcomes it has to produce.

Citing Indian economist Amartya Sen, he said: “Economic function must be related to purpose, and the purpose of economics is to improve the human condition. Globalisation makes sense only if it alleviates poverty and improves human lives.”

Stressing the Indian point that global trade regime should reflect aspirations of the people living in developing nations, India’s Commerce and Industry Ministry Anand Sharma said: “There should be rules based, fair, equitable multilateral trade agreements that reflect the legitimate aspirations of development of poor and vulnerable economies.”

Underscoring the importance of regional economic integration, he said India is trying to strengthen the regional and economic cooperation among regions of South Asia and Asia.

“We are entering into Free Trade Agreements with ASEAN (Association of South East Nations) countries and signing agreements related to services and investment with the European Union, Japan, Africa and Latin America because we believe that there must be robust integration and the growth have to be inclusive.”

In his address, President Mohamed Nasheed of the Maldives said his country was now a vibrant democracy after three decades of dictatorship.

Stressing that the Maldives is committed to fiscal prudence under the guidance of the IMF and World Bank, he said the country is open to foreign investments in infrastructure and other areas.

“We are taking bold initiatives targeting financial prudence to bring down budget deficits, encouraging privatisation, public-private enterprises, and cutting out red tapism and bureaucracy. We believe in business over bureaucracy,” he said.

Tamil Nadu’s Deputy Chief Minister M.K. Stalin spoke about the state’s success in attracting industrial investments and becoming the third most preferred investment destination of the country.