RUDY SAYS WORLD TRADING BLOCS ‘EXCLUSIVE’ IN NATURE & WEAKEN INTERESTS OF DEVELOPING COUNTRIES
Date : 19 Jan 2002
Location : New Delhi
The emergence of powerful World Trading Blocs is by nature ‘exclusive’ in operation and has weakened the bargaining capacity of the developing nations. The stance adopted by the developed nations in the WTO negotiations in raising issues such as environment, child labour, human rights etc. which are extraneous to international trade have further vitiated the world trade environment. Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, made these observations, while inaugurating the seminar on "India’s Economy in the 21st Century – Management Perspective" organised jointly by Indian Institute of Foreign Trade (IIFT) and Jagan Institute of Management Studies (JIMS), here today. Shri Rudy said the developing countries, particularly those, which have not been able to adapt to the fast changes ushered in by the era of liberalisation and globalisation, have been particularly vulnerable to the current developments. "In this context management institutions have a very important role to play in providing inputs to tide over such situations", the Minister said. Shri K. Dharmarajan, Director General, IIFT, presented the theme address of the seminar.
Shri Rudy emphasised that India is in a more advantageous position vis-à-vis many developing countries in the context of its recognised advantages such as skilled and abundant manpower, rich and varied natural resources and its cost effective production operations. He dwelt upon the changes world economy has undergone in recent past and underlined the fact that the political stability of India and its democratic traditions have brought in many foreign investors in the country. Comparing India’s position with China, Shri Rudy observed that India’s poor state of infrastructure has been a major stumbling block. " With the total dismantling of the non-tariff barriers by the developed world in the next few years and China’s entry in the WTO, the situation for India can only be considered as ominous unless various steps are initiated at all concerned levels", the Minister said.
Shri Rudy mentioned that recent policies of the government has changed its role from regulator to that of the facilitator and it is amply reflected in the EXIM and Investment policies. Speaking on the role of corporate sector, the Minister stated that it devolves on the industry to formulate pro-active and dynamic strategies to survive in an ever-changing international trade environment. He added that the academic institutions have a significant role in creating young business managers to develop a global mind set.