As the world struggles to come out of financial crises, the former British Premier, Gordon Brown, on Saturday pitched for international cooperation with greater participation of fast-growing economies like India and China.
“You [India] are part of the solution, not only for your own problem of poverty, but also for sustainable growth of the world economy,” he said, addressing the Hindustan Times Leadership Summit here. Mr. Brown said India could be the fastest growing economy in the world in the next two decades and had to shoulder greater responsibility in the new global economic world order.
He noted that for nearly 200 years after the Industrial Revolution, Europe and America were the twin hubs of major economic activity, trade, investments and consumption. However, he said this pattern had changed irreversibly over the past few decades with the rest of the world becoming the hub of economic activity while Europe and America still continuing to be major consumers. “This has led to imbalances in the world economy which needs to be sorted out,” Mr. Brown said.
Mr. Brown, who was Chancellor of the Exchequer for 10 long years, favoured global support to fast-growing economies such as India and China which in turn could spur financial growth world over. Europe and the U.S. are not in a position to grow at the pace for keeping unemployment low and raising prosperity, he said.
The bank credit crisis was triggered because the national regulators monitored only individual companies and failed to look at their global connections, Mr. Brown said and favoured a global supervisory body that would look into the economic activity in other countries. — PTI