IBSA blames US, EU for fin crisis

NEW DELHI: Criticising the US and the Europe Union for failing to keep a check on new financial instruments, India, Brazil and South Africa pushed for reforms of the international financial system and warned that ���palliative measures��� would not be enough to address the core issues at the heart of the financial crisis. The three nations grouping called IBSA, which is trying to emerge as a pressure group, have called for strict action against those responsible for the crisis and lack of credible regulation.

���The explosion of new financial instruments, unaccompanied by credible and systemic regulation, has resulted among others in a major crisis of confidence for which those responsible should be held accountable and liable,��� said the Delhi Declaration, which was adopted at the end of the IBSA summit.

The three countries acknowledged that developing countries were ���not immune��� to the financial crisis and that there is a need for a new international initiative to bring about reform in the international financial system.

India, which has been affected by the financial crisis, was keen to ensure that a strong statement was issued at the end of the IBSA summit. The financial crisis was high on the IBSA agenda with Prime Minister Manmohan Singh alluding to it in his opening remarks at the inaugural session of the third IBSA summit. ���IBSA has an important role to play internationally. We are meeting against the backdrop of the international financial crisis,��� he said.

Brazilian president Luiz Inacio Lula da Silva was less charitable towards the US and European countries blaming the ���rich countries��� for changing the world into ���a gigantic casino���. He also reiterated that the IBSA grouping needed to be ���agile and efficient��� and speak in one voice to have a bearing on global issues. South African president Kgalema Motlanthe was also highly critical of the current financial architecture. ���The ill-conceived decisions of the few have brought the international financial system on the brink of collapse. There is a need for improving governance of financial markets and institutions,��� he said.

The three countries have decided to convene a meeting of finance ministers and governors of Central Banks to establish a coordination mechanism.