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G-15 flays unbridled capitalism, agrees to promote group's interests

The leaders of 17 developing nations warned that unbridled capitalism allows the industrialised world to victimise their nations, and called for a change of course in the world's economy.

The fear that a few rich global players can trample hundreds of millions of people in poorer nations, dominated the opening of the ninth summit of developing nations in the lush Caribbean island of Jamaica on Wednesday.

Many leaders of the so-called Group of 15 or G-15 (which actually has 17 members) warned that rapid globalisation could destroy their economies and eventually hurt the industrialised world as well.

Jamaican Prime Minister P J Patterson called for the World Trade Organisation to move against what he termed "a resurgence of protectionist measures by developed countries.''

Patterson said that the income gap between the richest and poorest countries has risen dramatically over the past century and was now at a ratio of 60 to 1.

"The pace and direction of globalisation, which threaten defenseless nations and endanger millions of vulnerable people, will have to be curbed,'' warned Patterson, whose country has lost thousands of textile jobs to other nations with cheaper wage rates.

Others might disagree, especially member-nations like Mexico which benefits from preferred access to the North American market and has attracted some of Jamaica's textile jobs.

While apparently divided over concrete policies, officials here appeared united in the perception that their interests are given short shrift by the industrialised world.

"The end of the Cold War has deprived us of the only leverage we had: the option to defect. Now we can turn to no one,'' said Malaysian Prime Minister Mahathir Mohamad.

He lambasted developed nations and sought better cooperation among the member-countries.

He expressed the hope that the meet would result in a greater understanding of the problems which lie ahead.

Mahathir, who spoke on behalf of Asia, said the Great Asian Tigers ''are no more''. ''Reduced to whimpering and begging for IMF aid, they are but a shadow of their former selves…. We had welcomed foreign capital to boost growth but now we realise the damage: from being miracle economies, we have become impoverished nations. We are being compelled to open our economies to powerful foreign businesses.''

Attacking the International Monetary Fund, he said: ''As if the foreign corporations are not big enough they are now engaged in consolidating themselves. The temptation to interfere in local politics might be too much for the foreign giants to resist,'' he warned. He cautioned developing countries against such developments.

A more optimistic note was struck by Venezuela's new president, Hugo Chavez, who predicted a social and economic renaissance in Venezuela after a long period of slumber.''

Such problems, delegates argued, should prompt the IMF, World Bank and other multilateral institutions to re-think traditional measures, emphasising austerity in exchange for financial aid.

Together, the G-15 nations account for a third of the world's population and produce $ 2 trillion worth of goods, nearly 40 per cent of the gross domestic product of all developing nations.

Members include Malaysia, whose economic collapse aggravated southeast Asia's financial crisis, Indonesia, where economic problems brought down the government, and Brazil, which is struggling to avert hyperinflation and a currency collapse.

Seven heads of states and several top leaders of the member- countries are participating in the meet, being held in Montego Bay under tight security cover.

The other heads of states taking part in the deliberation are Prime Minister A B Vajpayee of India, Zimbabwean President Robert Mugabe, Sri Lankan President Chandrika Kumaratunga, Senegal President Abdou Diouf, Venezuelan President Hugo Chavez Frias and Nigeria's General Abdul Salamai Abubakar.

Vice-presidents and foreign and finance ministers represented Algeria, Argentina, Brazil, Chile, Egypt, Indonesia, Mexico, Kenya and Peru.

UNI

EARLIER REPORTS:

G-15 summit to debate economic crises and WTO

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