United Nations: Amid fears that the world was edging towards another economic meltdown that would hit growth targets of developing nations, India has said countries should pursue "growth-promoting" policies to strengthen global economic recovery. (Agencies)
"With global output continuing to show a downward trend in 2011, the prospect of developing countries increasing their exports, managing external debt and attracting foreign direct investments appear to be less encouraging," India's Permanent Representative to the UN Hardeep Singh Puri said at a UN General Assembly session here on Financing for Development.
Puri said it is "Essential that growth-promoting policies are pursued to strengthen global economic recovery which in turn would allow countries to raise higher public revenues".
In this regard, it is imperative that countries work not only towards financial inclusion and progressive tax policies but also to strengthen and democratize international tax cooperation and policy making.
He said while gap in aid delivery and external finance has undermined the capacity of the developing world to meet their development aspirations, the global economic crisis has further burdened them with limited growth, higher unemployment and increasing poverty resulting in lower domestic resources targeted at development.
Terming Foreign Direct Investment as important for financing development, Puri said its quantum cannot be expected on its own to tackle poverty, hunger and disease in developing countries.
"FDI must also forge productive linkages with the wider local economy and be consistent with the broader objectives of Sustainable Development to have a meaningful impact".
International trade too has long been seen as an engine of development, especially by developing countries that are dependent on exports.
"In recent times, however, significant risk factors including rising food and energy prices, increasing tariff and non-tariff barriers and other forms of export restrictions have negatively impacted trade prospects for developing countries," he said.
He said lack of market access, aid-for-trade and a skewed multilateral rule-based trading system continues to deny a level playing field to developing countries.
"If we wish to make trade a credible engine of inclusive growth, there is no getting away from a balanced and development oriented outcome of the Doha Round.
"And while doing so, we must ensure that trade distorting factors including agricultural subsidies in developed countries are comprehensively addressed," he said.
United Nations: Amid fears that the world was edging towards another economic meltdown that would hit growth targets of developing nations, India has said countries should pursue "growth-promoting" policies to strengthen global economic recovery.