November 24, 2002	Sunday	Ramazan 18, 1423

NEW DELHI, Nov 23: Top finance officials of industrialized and developing nations have agreed to fight dirty money and choke all means of funding to terrorists, according to a draft of a final communique to be issued at the end of their meeting here later on Saturday.

The officials, from the Group of 20 countries, also call for a reduction of remaining high trade barriers and trade-distorting subsidies so that the effects of globalisation can reach the poorest developing countries.

According to the draft communique, a copy of which was obtained by AFP, the finance ministers and central bankers during their one-day meeting here agreed to increase efforts to implement an action plan that includes a freezing of terrorist assets, an exchange of information and technical help.

The action plan was drawn up at the last G-20 meeting, in Ottawa a year ago, in response to the September 11 terrorist attacks on the United States.

We also agreed to continue our efforts to eliminate other abuses of the financial system, particularly money-laundering, the draft says.

Delegates have said debate on the funding of terrorism dominated much of the discussions, with the head of the British delegation, Chief Secretary to the Treasury Paul Boateng, earlier urging the international community to stay one step ahead of the terrorists.

The communique of the G-20 representing more than 85 per cent of the world’s gross domestic product (GDP) and over 60 per cent of its population also covers issues such as crisis prevention and resolution, economic growth, and development.

The delegates, mainly finance ministers and bankers, agreed that globalization is deliviering rising living standards to the population of many poor countries.

However they acknowledged the shortcomings in globalisation and agreed to work together to contain its negative effects.

The process of globalisation ... has not yet delivered its potential in reducing poverty in some of the world’s poorest countries, the draft said.

Reduction of the remaining high trade barriers and trade-distorting subsidies would contribute to spreading further the benefits of globalization, including to the poorest developing countries.

On crisis resolution, the G-20 draft communique says, a more orderly process for sovereign debt restructuring would help to mitigate the social and economic costs of financial crises and to restore access to international capital markets more quickly.

We therefore support further work by the international community, in consulation with debtors and creditors, on approaches to crisis resolution, including collective action clauses, and sovereign debt restructuring mechanism.

The ministers and central bankers said that assistance should be given to poorer countries to increase their capacity for trade.

The ministerial meeting also said liberalisation of capital account and loosening of controls over foreign exchange should be done in a phased manner.

A climate that fosters savings and investments, transparency, rule of law, and strong institutions coupled with increased investments in infrastructure and human capital in developing countries are essential ingredients for promoting growth and reducing poverty, the declaration said.

We recognize that development assistance can enable poorer nations to build capabilities for exploiting the benefits of more integrated markets, reduced economic distance between nations and greater exchange of global information and knowledge.

The G-20, which includes 19 countries and the European Union, was set up in 1999 as a forum for industrialised countries and emerging markets to encourage financial stability.

The group’s fourth meeting is its first in a developing country. —AFP