India, Belgium call for changes in global financial system

New Delhi, Nov 4 (IANS) Against the background of a global financial crisis, India and Belgium Tuesday called for a change in the architecture of the financial system to give due importance to emerging markets.

'A change is needed in the global financial system, with the International Monetary Fund reinventing itself in light of the current financial turmoil that is rocking the world markets,' said Commerce and Industry Minister Kamal Nath in his address to a seminar on 'India and Belgium - Partners in a Globalised World'.

The function was jointly organised by the Confederation of Indian Industry, Federation of Indian Chambers of Commerce and Industry, the Associated Chambers of Commerce and Industry and the Federation of Enterprises in Belgium to mark the visit of the Belgian King Albert II to India.

Kamal Nath said the reinvention of the global financial system was required as the world was now more inter-connected than ever.

Though globalisation has not resulted in any interdependence, it has certainly interconnected different economies and as a result, a slowdown in the developed world will certainly impact the developing economies, he said.

While India may not feel the full impact of the meltdown, it will be indirectly affected by it, he added.

Agreeing with Kamal Nath, Belgian Minister for Foreign Affairs Karel De Gucht said current financial meltdown was a 'clear signal' for a new financial architecture. He called for greater consensus among countries to bring about this change.