ISLAMABAD, Dec 2: Prominent Pakistani intellectuals at an international seminar here on Tuesday called for reforming the World Bank and the International Monetary Fund (IMF) so as to give due representation to the developing countries in their policy-making apparatuses.
The two-day seminar on “Emerging trends in geo-economic world order” was organized by the Foundation for Research on International Environment, National Development and Security (FRIENDS) in collaboration with a German NGO, Hanns Seidel Foundation.
The participants included noted economists and scholars from China, Turkey, Germany, Belgium, Pakistan and various countries of South Asia.
General Mirza Aslam Beg (retired), Chairman FRIENDS, said the hopes for peace and harmony in the post-cold war scenario had remained unfulfilled due to the contradiction between the aspirants for dominance and hegemony on the one hand and the proponents of peace on the other.
The latter, he added, were overwhelmingly in favour of strengthening the United Nations and restructuring of the international financial institutions (IFIs) so that they no longer protected the interests of the developed world only but were also harnessed for the good of humanity at large.
Dr Akhtar Hasan Khan, former secretary planning division, recounting the history of the World Bank and the IMF, said they had exhausted their original mandate of reconstruction of the war-ravaged Europe.
Subsequently, he added, the US and western European countries restructured them in such a manner as to maintain their hegemony over them although the locus of all of their operations was now the developing world.
Nevertheless, the heads of the World Bank and the IMF were drawn invariably from the US and Europe because they had allocated to themselves nearly 50 per cent of seats in the board of directors.
Epitomised by the adage “Same size fits all”, the policies of both the IFIs stemmed from their theological commitment to neo- liberal ideology. These bodies were now outdated because they imposed programmes on present-day world that might have been relevant in a US of early 20th century.
Finance Minister Shaukat Aziz said the economic reforms occurring around the world had gradually transformed financial systems all over the world leading to the ascendancy of market forces.
Lauding the globalization process as an opportunity, he also admitted to its failures. Nevertheless, one should, instead of reacting, try to adjust to these changes, he added.
In Pakistan, he added, a vigorous deregulation had taken place. This did not, however, mean that the government had abdicated its role completely, because the ministries formulated policies with approval of the cabinet and the parliament.
One of the highlights of the seminar was a presentation by Prof Raja Mohan, from the Jawaharlal University, New Delhi, on the victories of globalization.
“One of its consequences has been the prospect of ending the economic partition of the subcontinent, which in essence was a single market until 1947.” It were the socialist policies followed by India and Pakistan in 1960s/1970s which solidified the political partition into an economic partition, he remarked.
While Pakistan had been reluctant to accept the implications of globalization for regional economic cooperation, the smaller countries in the region were more willing to accept the reality as their own economic future was tied to that of the Indian market, thus sidelining this country.
Prof Mohan predicted a bleak future for Saarc, which could become productive only if India took the lead.
In reply to a question, he said Prime Minister Atal Behari Vajpayee had agreed to attend the forthcoming Saarc summit in Islamabad as part of his interest in developing relations with Pakistan and resolving the Kashmir issue.
Such a scenario was possible only during his being at the helm of affairs in India, because it may be very difficult for Sonia Gandhi to undertake any decisive move, he added.
Dr Esra Hatipoglu from Marmara University of Turkey in her paper on the impact of geo-economic world order on international relations said so far the effects of globalization in West Asia had proved to be mixed and contradictory.
“On the one hand, it creates unprecedented opportunities for development and prosperity while on the other hand it brings in its wake volatility and instability that may add to the feeling of insecurity that the less fortunate parts of the world are already experiencing.”
Other speakers included Dr David Fouquet, former secretary- general European Institute for Asian Studies, Brussels; Posh Raj Pandey, national programme manager Multilateral Trade Integration, Nepal; and Dr Syed Wajid Pirzada, president Roots Pakistan.