ASEM leaders to collectively revamp financial systems

Beijing, Oct 25 (PTI) Facing first tremors of the global meltdown, leaders from Asia and Europe Saturday pledged to work collectively to revamp financial systems, bringing in more effective regulatory mechanisms.

The financial crisis came under intense focus during the
7th Asia Europe Meeting (A.S.E.M.) attended by leaders from 45
countries.

"Leaders pledged to undertake effective and comprehensive
reform of the international monetary and financial systems,"
the statement issued by the Summit on the financial situation
said.

In the revamp of the system, the world leaders favoured a
"critical role" for agencies like International Monetary Fund
(I.M.F.) in bailing out countries badly affected by the
crisis, as they laid the ground work for the G-20 summit next
month in Washington, where they expect more firm decisions to
be taken.

"Leaders agreed that I.M.F. should play a critical role
in assisting countries seriously affected by the crisis, upon
their request," the statement read.

"They agreed to take quickly appropriate initiatives in
this respect, in consultation with all stakeholders and the
relevant international financial institutions," it said.

The two-day summit which concluded Saturday, saw the
attending leaders deliberating over issues of international
concern including the financial turmoil, climate and
sustainable development.

The Summit came out with a declaration calling for
cooperation on Millennium Development Goals (M.D.G.s) for
sustainable development.

They also agreed on a fully coordinated response and
comprehensive strategy to tackle the issue.

The leaders called on the developed countries to increase
resources for development and fulfil the commitment of
achieving the overall target of using 0.7 percent of their
gross national income for official development assistance by
2015.

On the financial front they said market and regulatory
failures had led to the present crisis and these had to be
addressed the foremost.

Expressing confidence that the crisis could be overcome
through "concerted efforts," A.S.E.M. agreed that authorities
of all countries should take firm, decisive and effective
measures in a responsible and timely manner to rise to the
challenge.

The statement also recognised the need to improve
supervision and regulation of all financial actors, "in
particular their accountability".

The summit opened yesterday with the attendance of the
leaders and representatives from 45 Asian and European nations
and organisations.

It has drawn the participants' attention from the
designed topics of energy, climate change, food security and
sustainable development to coping with the financial crisis.

India participated in the summit for the first time,
which welcomed five other new members -- Bulgaria, Mongolia,
Pakistan, Romania, and the Secretariat of the Association of
Southeast Asian Nations (A.S.E.A.N.).

Chinese Premier Wen Jiabao urged unity between the two
regions as they tackled the worst financial crisis since the
Great Depression of the 1930s, and called for more regulation
of the financial system.

"Only through cooperation can we have strength, can we
tide over the difficulties," Wen told reporters after the end
of the talks. PTI