India moves with the age of pragmatism and realism at G-15 summit

But as one senior member of the Indian delegation put it, this is the age of pragmatism and realism. India certainly seemed to have followed that precept, even sparking off the statement on currency regulation by suggesting that a meeting of technical experts be convened to study the problem.

The official thinking seemed to be that this would be one strategy through which India could create better bonding with the ASEAN grouping, in which New Delhi has secured the coveted Full Dialogue Partner status. But what is distressing is that in return for the largesse — India’s decision to underplay its somewhat divergent perspective on the currency question — no special favours were forthcoming. Of course, India alone is to blame for this. Being a backstage manager does not win applause in today’s world.

Occasionally, one has to emerge into the limelight — something that New Delhi continues to fight shy of doing.

Despite this, however, India could capitalise on the considerable goodwill it has marshalled in the G-15, if it can translate this at a later stage into tangible support for its stances over more equitable access to markets, capital and technology in the developed world. And also lobby for support in its bid for membership in forums like APEC, ASEM and the United Nations Security Council. It could also enhance its economic standing by taking advantage of the new impetus for intra-G-15 trade.

Of course, such initiatives will help not only India, but also the G-15 to emerge as a powerful economic forum — the only modus operandi for increasing its bargaining power vis-a-vis the G-7. But before this can happen, the G-15 must first get its house in order.

Although the right noises have been made about re-energising the grouping and getting its members to meet more regularly and with a concrete agenda, one wonders whether the next summit to be hosted by Egypt in May (pushing Jamaica to 9th place in the queue) will see the mood of self-examination fructifying into positive action.

Of course, in a disparate forum such as the G-15 summit, which has in its fold, underdeveloped economies, big emerging markets as also relatively prosperous newly industrialised countries, sewing up a consensus on the joint communique is itself something of a miracle.

The lopsided representation from Latin America, which currently hogs almost half the forum, and the inadequate Asian presence (India, Malaysia, Indonesia), has ensured that sub-regional politics will continue to rear its head.

To a great extent, this was sought to be neutralised, and the allegiance of the Latin American countries to issues such as the distortions in the implementation of the World Trade Organisation’s built-in agenda and the currency crisis, was obtained despite the shadow of the United States looming in the background.

One significant step forward, to be sure, is the unequivocal admission that the grouping can push its primary agenda — a more equitable world trading system — only by developing its economic muscle.

The first ever meeting of the trade and commerce ministers from member countries which was held prior to the summit did make an important contribution by reiterating the commitments wrested from the WTO at the Singapore ministerial meeting last year. While stressing the need for continuing the process of trade liberalisation, the ministers lashed out at the failure on the part of the developed countries to keep their part of the bargain, in spirit, if not in letter. These concerns also found reflection in the joint communique, and in the Chairman’s concluding statement.

The question, however, is whether the G-15 has the will, and the economic leverage, to metamorphose them from rhetoric to reality.