By Nevine Khalil During the G-15 summit that opened on Monday in Cairo, Egypt acted to revive the group's role in order to give developing nations a louder voice on the international scene. Egypt stepped in at the last minute last year to offer a venue for the eighth G-15 summit after Jamaica said it could not host the gathering as scheduled. Cairo believes that a united position of member states should be forged for a future North-South dialogue. President Hosni Mubarak had earlier consulted with British Prime Minister Tony Blair, whose country heads the European Union and G-7, so that industrialised nations may "hear our voice and heed the advice we bring from the South." A World Trade Organisation (WTO) ministerial meeting will take place in Geneva later this week, and a G-7 plus1 summit is also scheduled. To close ranks among emerging economy states, South-South dialogue and cooperation must also be consolidated. "We have established a voice for the South," Mubarak said at the opening of the G-15 summit. "This voice needs to be strong and must be heard." He added that the G-15 was the best forum for sending out signals from the emerging markets to the advanced economies. Citing Egypt's experience of economic reform, the government believes the private sector in developing countries must be given the lead in promoting economic ties and achieving sustainable development. At the same time, however, Egypt asserts that attempts to liberalise underdeveloped economies should not be at the expense of social development. "The global economy is not for some to grow with and others to fall behind," Mubarak said in his opening speech. He added that the opportunity offered by the eighth G-15 summit must be "put to good use," in order to allow developing nations to carve a niche for themselves in the new world economic order. "Emerging economies must speak out, they must be heard," Mubarak said. Mubarak underlined the importance of dialogue among nations. "A structured dialogue between the South and leading industrial countries has become essential for the proper management of the world economy," he said. And "dialogue among nations in the South is no longer a luxury. It has become a must; an essential part of proper economic policy design." The summit's agenda was topped by the Asian economic crisis, a phenomenon which Egypt wants to be carefully studied in order to avoid its recurrence. Mubarak said the Asian financial crisis had underlined the deep inter-dependence of world economies. "Marginalisation is no longer an option," he said. "Not for the developed countries to impose and not for the Third World to suffer from." Asia's financial meltdown was a centre piece for the summit, not only in terms of its possible domino effect on other emerging markets, but also as an unprecedented phenomenon which could turn out to be an inherent malaise of a new economic order. Mubarak said that developing countries had better prepare themselves when dealing with novel economic globalisation factors. "Lessons learned" are that while dramatic improvements in global financial systems facilitate the flow of capital, they cause rapid transfer of problems across the world. The contagious effect of perceived fragility in a nation's economy causes investors to anticipate similar weaknesses in neighbouring economies and, in turn, pull out of markets throughout a region. Also, while the developing world should consider policies followed by industrial countries when designing ways of avoiding domestic or external imbalances in their economies, advanced economies must avoid excessive and distorted fluctuations in capital and trade flows. Furthermore, Mubarak said, economic liberalisation must be gradual so that institutions concerned with protecting the stability of emerging financial systems are fully operational. Also, financial recovery and stabilisation programmes sponsored by the international community should take into account the immense social cost of the adjustments imposed on developing countries. There is also a need for appropriate regulatory and supervisory standards, and active participation by developing countries in international economic institutions to achieve greater integration in global economy. On a more optimistic note, Mubarak said that the Asian crisis "is but a passing pause in the impressive record of rapid growth of Asian economies." He added that eventually "stronger and more robust economies will emerge." Mubarak's personal representative, Mounir Zahran, said that the negative social and economic repercussions caused by the Asian meltdown must be avoided in the future. "We need a formula that revitalises economic and political cooperation among our countries; that balances the interests of both developed and developing countries," he said. Before the summit opened, Foreign Minister Amr Moussa was cautious, saying that the participants had not worked out a formula to ensure that the Asian crisis would not be repeated. "We are not expecting any magic formulas at the end of the meetings," he said at a three-hour-long preparatory meeting on Saturday. While Malaysia and Indonesia profusely blamed Western speculators for the crash, Egypt said that participants should focus on understanding developments in the world of finance, especially those which could affect emerging economies. "The purpose should not be to trade accusations or to enter into confrontations or to avoid taking responsibility," Moussa told his counterparts during Saturday's meeting. Moussa said that the summit was taking place at a "sensitive" point in time in the process of forging global economic ties. "It is an important opportunity to emphasise our positions," he said. "We have to deal with world [economic] blocs in a contemporary fashion." Egypt also took the opportunity of the summit to focus on consolidating bilateral relations with G-15 states. Hours before the summit opened, Mubarak held separate talks with presidents Liamine Zeroual of Algeria, Suharto of Indonesia and Peru's Alberto Fujimori. On the sidelines of the summit, Egypt and Malaysia signed a cooperation agreement in the field of religious affairs. The signing ceremony was witnessed by Prime Minister Kamal El-Ganzouri and his Malaysian counterpart Mahathir Mohamad, who had earlier received an honorary doctorate from Al-Azhar University for his writings on religion. The foreign ministers of both countries also signed an agreement on scientific and technological cooperation. The two prime ministers discussed bilateral relations, especially joint projects which were initiated during last year's G-15 summit in Kuala Lumpur. They include an Alexandria shipyard, East Oweinat power station, auto bodies and furniture manufacture, and cooperation in advanced technology. Malaysia is one of Egypt's strongest economic partners in the group, a relationship Egypt is trying to forge with other G-15 members like those in Latin America. On Monday, Mubarak briefly outlined to his guests Egypt's economic reform measures, which are "cautiously and gradually" establishing the parameters of its integration in the global economy. "Today, Egypt stands among the countries that prove that the South can prosper," he said. "Egypt has started its journey to prosperity." Mubarak expressed confidence that Egyptian institutions can withstand the "uncertainties" of the world economy. He called on the private sectors of all member states to play a role in carrying out economic policies and reforms to achieve sustainable economic growth and prosperity. "Their dialogue, their joint ventures are our strength," he said. "They will usher in the age of technology into our countries."
