LANGKAWI: THE recent currency crisis has provided opportunities and avenues
for even
greater partnerships and collaboration among developing countries. The
fourth Langkawi
International Dialogue (LID 99) on "Managing Economic Recovery for Shared
Prosperity - The
Smart Partnership Approach" offers a unique opportunity to learn.
There are many "smart partnership approaches" that can and must be seized
upon in order to
ensure that there is "shared prosperity" among developing countries of
the South and enable them
to determine their own destiny.
The experience and lessons from developing countries are more relevant
and useful for others at
similar levels of development than those from the developed world.
Undoubtedly, the developed world also went through a process whereby they
evolved from
being a developing country to where they are today, but their development
experiences are
vastly different. The global political and economic environment was different
then - it was one of
colonies and colonial masters. Today, there are many more independent and
sovereign countries
in the world that qualify for the "developing country" status.
While previosuly, even the trade patterns were detemined in a North-South
direction; today
many developing countries are trading and increasingly doing businesses
with each other without
having to go through the capitals and ports of the developed countries.
The opportunities provided for networking among the businessmen and those
from the corporate
sector in Langkawi will also enhance and establish the foundations for
further cooperation among
developing countries. Business links can be developed in different forms
and in different
directions. They need not follow the "old established routes" but could
chart out new ones for
mutual benefit in order to ensure "shared prosperity" in the future.
There is also no one method of resolving problems and issues as there are
many roads that lead
to Rome. Similarly, the methods and remedies utilised over the years, including
those prescribed
by multinational organisations and tested in developed countries, are not
"compatible" for a
developing country environment today.
Thus the LID is an important forum for leaders from developing and emerging
countries to share
their experience. The recent crisis is a case in point. The Langkawi Dialogue
provides an
opportunity to identify the weakenesses and circumstancs that had precipitated
the crisis and the
responses.
How can developing countries avoid the contagion and devastation that had
been experienced
by many Asian countries recently? What are the remedies and solutions?
What are the
appropriate policy responses in crisis prevention and resolution? How can
the business sector
contribute and participate in national, regional and international economic
cooperation?
The policy responses to the crisis differ from one country to another.
Thailand took the
International Monetary Fund (IMF) route. Taiwan and China, which were not
as badly affected
by the crisis, also have lessons they can teach to developing countries.
Malaysia drew up its own
home grown remedies for continued and sustainable development. The leaders
at the dialogue
will have an opportunity to listen first hand to the various options and
solutions available
especially to small, fragile and emerging economies.
With the worst of the crisis over, the focus and discussions on how the
world financial
architecture should be fashioned can and must necessarily continue. The
increasingly globalised
world calls for reforms in the financial system.
In the process, the voice of developing countries, as being among those
that were affected by the
crisis, must be considered. They must be equal partners in the formulation
of a new financial
architecture just as there can and must be an equal partnership between
the governments and
businesses.
Presently much of the discussions for change and reform are being undertaken
by those in the
developed world. However, those affected by the recent crisis will have
important contributions
and roles in the reform and recovery process.
Many of those affected by the recent crisis are developing countries. While
many of the African
countries continue to fight an uphill battle in development - low commodity
prices which adversly
affects their export revenues, debt burdens, under-developed industrialised
sectors which results
in their being at the mercy of others in their export markets and those
with managerial skills and
capital.
Individually they do not have the muscle, but collectively they are a formidable
force. They
should utilise their collective strength and voice to ensure that their
concerns are taken into
account in the formulation of new rules, regulations and reforms of the
financial system. They
should also use their collective muscle to determine the course of their
own future.
It is an opportunity that should not be wasted nor should the developing
countries miss out. Even
as many countries are making significant progress in overcoming the adverse
effects of the crisis,
the need to make a positive contribution in formulating and drawing up
new rules and reforms
should not be put on the back burner.
If they do not take this opportunity to have their voices and concerns
considered and if they do
not take a firm stand on issues that concern and affect them, they may
not be heard at all. The
losers will then be their own people.
HARDEV KAUR