The Hindu Business Line : Spur domestic demand to sustain growth: Escap

THE UN Economic and Social Commission for Asia and the Pacific (Escap) on Thursday said sustaining economic growth in the region would depend on stimulating domestic demand, as the global economy is unlikely to show strong growth until well into 2003 or possibly later.

Reviewing the macro-economic implications of the economic slowdown in various economies in the Escap region, the annual report of the UN body said this is so since the growth stimulus from a rebound in world trade and hence, from net exports is likely to be moderate among Escap developing members over the next 12 to 18 months, it added.

However, Escap said, "It has to be recognised too that reforms are an essential, continuing process that needs to be securely anchored in a realistic framework of development and poverty reduction strategies in developing countries." As such, it urged members to speed up structural reforms to make their economies more competitive, to manage globalisation better by a deeper understanding of the interactions between international and national policies and financial markets and to continue to deepen financial markets and reduce dependence on any one source of finance for development.

It further asked them to strengthen the formulation and implementation of policies, especially prudential macro policies and to enhance the quality of governance in both the public and private sector and additionally to minimise conflicts of interest in the field of governance.

Commenting on the Doha Development Agenda, it said the Fifth WTO Ministerial Conference to be held in Cancun in Mexico in September should not get bogged down in discussions over procedural matters and deal constructively with substantive issues that lie at the heart of the Doha Development Agenda.

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