Pretoria: Concerned over debt crisis in Eurozone, Prime Minister Manmohan Singh and leaders of South Africa and Brazil on Tuesday asked Europe and other advanced economies to take urgent steps to prevent the global economy from slipping into a double-dip recession.

They also demanded reform of global institutions of governance, including UN and financial bodies, to address the current global challenges.

Prime Minister Singh, South African President Jacob Zuma and Brazilian President Dilma Rousseff, who represent the fast developing economies, discussed the crisis being faced by the advanced countries at their day-long trilateral summit. They were in agreement that the situation needs to be prevented from spiralling out of hand.

Singh said the world financial and capital markets were showing signs of "acute distress" due to the negative signals sent by the sovereign debt crisis in Europe and recessionary trends in the "traditional engines" of global economy – the US, Europe and Japan.

"Developing countries cannot remain untouched by the negative impacts of these developments. Their ability to address their developmental challenges has been adversely affected," Singh said addressing the 5th India-Brazil-South Africa Summit.

"We hope effective and early steps will be taken by Europe and other advanced economies to calm the capital and financial markets and prevent the global economy from slipping into double-dip recession," Singh added.

With G-20 summit in the offing in Cannes early next month, Singh said IBSA countries should coordinate their positions in the run-up to it to ensure that priorities of the developing economies are adequately reflected in the deliberations of the grouping.

He also said that India-Brazil-South Africa (IBSA), three leading emerging economies, were united in their efforts to address the deficit in global governance and pressed for enlargement of the UN Security Council to reflect the present day reality.

Brazilian President Rousseff said the three leaders were in agreement that "credible" steps were needed by Europe to stop the situation spiralling out of control.

Demanding reform of international monetary and financial institutions and the UN, she underlined in a statement after the Summit that "old world order needs to be replaced by a new world order" to find solutions to the current day challenges.

Singh said India, Brazil and South Africa were united in their efforts to address the deficit in global governance and pressed for enlargement of the UN Security Council to reflect the present day reality.

"We stand united in our efforts to address the deficit in global governance. The United Nations Security Council must be enlarged in order to reflect present day reality and to make it representative and effective in responding to global challenges," Singh said at the Summit of the three countries, all of which are aspirants for permanent membership of enlarged UN Security Council.

A Joint Declaration adopted at the Summit said, "The Leaders expressed concern at the ongoing deterioration of the global economic scenario, which presents particular challenges
for the economic policy and growth prospects of developing and low-income countries."

Noting that "downside risks have increased substantially in recent weeks", the joint declaration said, the leaders stressed the importance of the implementation of a "credible plan of macro-economic and financial policies and structural reforms by the Eurozone countries, as a necessary step to prevent further negative shocks to the world economy."

They also highlighted the importance of complementary measures by other key developed economies to boost recovery and help the global economy as a whole and emphasized that domestic policy responses and structural reforms alone remain insufficient to restore growth in many developed and developing countries.

Singh, Zuma and Rousseff emphasised the need to increase policy coordination amongst G20 nations, with a view to "avert a new recession" and to promote a robust recovery in order to ensure strong, sustainable and balanced growth of the global economy in the medium term.

They were of the view that Brazil, India and South Africa are doing their part to promote growth while containing inflationary pressures and ensuring fiscal discipline.

They stressed the importance of implementing the current international commitments of financial regulatory reform, with a view to improving oversight and supervision, towards a more resilient financial system. They also renewed their commitment to the timely implementation of the Basel III agreement.

The leaders emphasized the importance of a more stable and resilient International Monetary System and coherent management of capital flows while highlighting the special responsibility of reserve currency issuers in the field, in the sense that their policies can have a disproportionate impact on global liquidity and capital flows.

"We reflected on the imbalances in which live", Zuma said while emphasising that the global institutions were "still skewed in favour of developed countries". He said the three leaders had agreed to work for reform of the UN to make it a representative body.

Zuma said the unique forum of IBSA had shown that democracy and development can work together and that the three countries will work to ensure its growth further.

The Prime Minister described IBSA Trust Fund, to which each country of the grouping contributes USD one million, as a novel initiative through which IBSA countries have been able to share developmental experience with other developing nations in the true spirit of South–South cooperation.

IBSA urges WTO nations to end impasse

India, Brazil and South Africa (IBSA) called upon WTO members to end the impasse over
Doha talks for a global trade treaty, build on consensus achieved and work towards successful conclusion of the negotiations.

"To overcome the current impasse and to bring the (Doha) round to a successful conclusion, the (IBSA) leaders reiterated the need to re-affirm the integrity of the mandate that launched the round, and to build on the convergence already achieved," said the declaration issued at the end of the fifth IBSA Dialogue Forum meeting.

The meeting was attended by Indian Prime Minister Manmohan Singh, South African President Jacob Zuma and Brazilian President Dilma Rousseff.

The Doha round of trade talks, which sought to put the interest of developing countries at the centre of the negotiations, have been pending since 2001.

"The current impasse in the negotiations is, therefore, a source of serious concern. The distortions caused by the high levels of protection and subsidies in agriculture in the developed countries continue to undermine the development prospect of many developing countries, especially the least developed countries," said the declaration.

The leaders also urged the members of the World Trade Organisation (WTO) to reach an agreement on measures of interest to Least Developed Countries (LDCs) and not to make them conditional to reaching an agreement on market access issues.

IBSA seeks ambitious outcome climate talks

The IBSA called for "comprehensive, balanced and ambitious" outcome at the fortnight-long Durban climate talks scheduled to begin late next month.

"The outcome of Durban should be comprehensive, balanced and ambitious, within the context of sustainable development and poverty eradication and in accordance with the provisions and principles of the Convention, in particular the principles of equity and common but differentiated responsibilities and respective capabilities," said a joint declaration issued after the 5th IBSA Summit.

Prime Minister Manmohan Singh, South African President Jacob Zuma and Brazilian President Dilma Rousseff also pointed out that the Durban Conference was the last opportunity to reach an agreement before the Kyoto Protocol completes its tenure next year.

The leaders "called for an agreement on the second commitment period under the Kyoto Protocol as well as the early operationalisation of all the institutions agreed to at the climate talks in Cancun last year.

They agreed that an appropriate assessment of the Green Climate Fund should be undertaken during the Durban talks, in order to ensure its adequate structure, with a view to timely disbursements to developing countries.

JPN/Agencies