Business | Economy
Miliband applauds UAE, Gulf states for solutions
Britain said the UAE and other Gulf countries, which contribute to solutions to the global crisis, have a right to assume their seat at the top table, Britain's top diplomat said on Tuesday.
- By Samir Salama, Associate Editor
- Published: 23:15 November 25, 2008
- Miliband told the Nuclear Energy Conference that Britain is very pleased to see more emerging economies now assuming their seat at the top table.
- Image Credit: Ravindranath/Gulf News
Abu Dhabi: Britain said the UAE and other Gulf countries, which contribute to solutions to the global crisis, have a right to assume their seat at the top table, Britain's top diplomat said on Tuesday.
"Britain has long argued that our international institutions, both political and financial, need to be reformed to reflect the growing importance of countries such as the UAE," said David Miliband, British Secretary of State for Foreign and Commonwealth Affairs.
He told the Nuclear Energy Conference being held in Abu Dhabi that Britain is very pleased to see more emerging economies now assuming their seat at the top table.
"We firmly believe that those who are able to contribute to solutions to the global crisis should be involved as partners in whatever architecture emerges," he said.
The British minister stressed the question "for us all then, is how we can safeguard our peace and prosperity for the future. How we can protect the economic, political and social gains of the last fifty years, and maximise our opportunities for the future?"
Threats
He identified three threats the world is facing. "The first is economic, because there is a risk that the current economic downturn will provoke siren voices to call for a return to protectionism and an end to the globalisation on which our economies so depend.
The second is political, because there are two competing trends. One, where pragmatism rules, where shared solutions are developed in response to shared problems, and where dip-lomacy is the basis for engagement. The other is characterised by the violent opposition of extremist organisations such as Al Qaeda.
Finally, security, where I believe the most immediate challenge is from the proliferation of nuclear material and the prospect of a nuclear armed Iran.
Outlining the situation in the global economy, Mili-band said in the last six months we have seen world share prices fall 50 per cent, huge volatility in the price of oil and other assets, and global financial institutions booking almost $1,000 billion of write-downs. Global growth is slowing sharply. We need a policy response to match the challenge.
Past mistakes
"Today we must not repeat the mistakes of the US in the 1930s when the ill-advised Smoot Hawley Act raised tariffs on thousands of US goods and led to a beggar-thy-neighbour spiral that saw global trade fall by 60 per cent. We must resist protectionism in all its forms."
Miliband added that it is imperative to work together "urgently to break the deadlock in the Doha trade round, and why the G20 leaders at the summit in Washington were right to task Trade Ministers to take this forward."
Miliband welcomed investments from the region and said: "We must ensure openness to investment. Investment flows from Abu Dhabi and the Gulf are part of the answer to the financial crisis, bringing much needed capital and stability. We must ensure that the world remains welcoming to your investment, not just in times of crisis, but in times of stability as well."
He said that sovereign wealth funds are now recognised as valuable participants in the international financial system.
"I particularly welcome the best practice set out in the Santiago Principles, in whose formulation Abu Dhabi played such an important role.
"I very much hope that this will create the investment environment from which both our countries can benefit."
He stated that last week's G20 summit was a first step in recognising collective action to stabilise the global economy and the global financial system, needs a much wider group of actors, if it is to be successful.
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