MercoPress. South Atlantic News Agency

Brazil fears “unfair” recession caused by financial casino

Brazilian President Lula da Silva

The leaders of India, Brazil and South Africa criticized rich countries for failing to act quickly to prevent the global financial meltdown. At a summit in New Delhi, they urged Western nations to manage the crisis in a manner that will not hurt their developing economies.

Following the summit Brazilian President Lula da Silva expressed fears that developing countries will not escape if the West is hit by a deep recession triggered by the financial crisis. The Brazilian leader said it is unfair that poorer nations will have to pay for the irresponsibility of financial speculators in rich countries. He added the three countries will talk to friends in the US and European Union to take steps so that the effects of the crisis do not reach "less developed countries which did not participate in this financial casino." South African President Kgalema Motlanthe was equally scathing, saying the ill-conceived decisions of a few have brought the international financial system to the brink of collapse, with dire consequences for developing countries. The three countries say the voice of emerging nations should be heard on how to manage the crisis. In a summit declaration, the three countries called for a new international initiative to solve the problem. They say they want tighter financial regulation, and stronger systems of multinational consultations and surveillance. The finance ministers and governors of Central banks of the three countries plan to meet to coordinate their response to the crisis. The three countries say they will cooperate to protect their economies, which they say have enough financial reserves and positive trade balances. Indian Prime Minister Manmohan Singh said the three countries will boost trade and called for a revival of negotiations on world trade talks. "The current crisis affecting the international economy has made it that much more important for us to explore one another's markets for mutually beneficial opportunities. It is our expectation that the target of 15 billion US dollars for trade by the year 2010 would be achieved. We have accordingly agreed to set a target for trilateral trade of 25 billion by 2015." Wednesday's summit was the third between the three countries, which meet annually to boost cooperation and develop common positions on global issues such as world trade talks.