President tells international financial institutions:

Asia should not be held to ransom

Rasika SOMARATHNA

International financial institutions, that play an increasing role in the Asian region, should be more concerned about the burdens they impose through conditions for assistance and elimination of poverty and should not be held ransom to such conditions, President Mahinda Rajapaksa said.

Delivering the Keynote Address at the inauguration of the Asian Cooperation Dialogue 8th Ministerial Meeting at the BMICH yesterday, the President said these institutions should recognize the many disadvantages caused by subsidies implemented by the advanced economies, while preaching to the developing countries to move away from subsidies.

Countries participating at the Dialogue
Kingdom of Bahrain
Bangladesh
Brunei
Cambodia
China
India
Indonesia
Japan
South Korea
Laos
Malaysia
Myanmar
Pakistan
Philippines
Oatar
Singapore
Thailand
Vietnam
Kazakhstan
Kuwait
Oman
Iran
Mongolia
United Arab Emirates
Bhutan
Russia
Saudi Arabia
Tajikistan
Uzbekistan
Kyrgystan 

“Similarly, the importance of subsidies in helping the lesser developed countries to face up to the challenges of growth, also deserve serious recognition,” he added. The President noted that the crisis was largely imposed on the region by those outside of Asian block.

“Our economies are today facing hardship due to the problems caused by others who should share the burdens of recovery,” he added. Asian countries and many others, are today carrying the burdens caused by poor regulation and the encouraging of greed in the dominant economies of the West, President Mahinda Rajapaksa said.

The President said that new solutions to such challenges should be an area that should engage the attention of the Asia Cooperation Dialogue.

“We need to turn this challenge into an opportunity by expanding intra-regional trade and the influence of our financial markets.

“Such measures will not only strengthen our competitiveness but will also help us to build valuable partnerships with other regions, for the purpose of contributing to global economic well-being, he added.

“In centuries past connectivity was wide-spread throughout Asia, with the legendary Silk Route linking us with one another and with Europe. It is through this route that the flavour of Sri Lanka’s spices, for instance, reached Europe, and merchants from the Orient came in search of business to our island.

“All this headway that Asia had made was later lost due to invasions and conquest by the colonial powers. Therefore, the concept of the Asia Cooperation Dialogue is indeed an important mechanism for restoring the cooperation that once existed among the nations of Asia,” the President noted.

The President observed that Asia could achieve its lost glory and could be the continent of the future if it focuses on its inherent strengths in a collective and a prudent manner.

While identifying the region as having a legendary and prosperous past the President said, “Asia should strive to regain its independence that is challenged on many fronts and across many borders.”

“The countries of Asia can succeed in rebuilding our continent by greater reliance of our own bonds of unity, strengths of history, and capabilities of our own people.”

In this regard the concept of the Asia Cooperation Dialogue is indeed an important mechanism for restoring the cooperation that once existed among the nations of Asia, the President identified.

The President also noted that the theme for the 8th Ministerial Meeting of the Asia Cooperation Dialogue, “Spirit of Asia: Global Economic Recovery and Development Prospects,” was a timely one for more reasons than one.

He pointed out that Asia accounted for more than sixty percent of the world population and had a growing middle class and was increasingly proving to be one of the most lucrative markets in the world. Also Asia is the largest recipient of global FDI. Its contribution to the global GDP is close to thirty percent. It has an abundance of natural resources, he pointed out. Commenting on the country’s recent triumph over terrorism the President said that although Sri Lanka received considerable support from many friendly Nations, success had mainly come through indigenous efforts.

“The conclusion to be drawn is perhaps, that the problems of a country can only be resolved by those who know best its ground realities, namely, by its own people,” he added.

While identifying the end of conflict as a catalyst for optimism, the President made an open invitation to ACD member countries to become stakeholders and beneficiaries in the promising opportunities resulting from the post-conflict phase in which Sri Lanka stands.

Foreign Affairs Minister Rohitha Bogollagama too addressed the gathering. The ACD Ministerial meeting which concluded its 8th sessions yesterday is attended by 31 member states.