The Pravasi Bhartiya Diwas has attracted NRIs from all over the world.
At the meet, India suggested the need for an "Asian imprint"
for governance and regulation of markets as an alternative to capitalism
and socialism to tackle the crisis arising out of the global financial
turmoil. It also cited the economic turmoil as an "opportunity"
for creating a coherent set of transparent rules to have a fair and
orderly market. "We now have the opportunity to create better regulatory
systems and best practices. We must enforce them evenly," India's
Overseas Affairs Minister Vyalar Ravi told hundreds of Non Resident
Indians gathered here to attend the Prawasi Bharatiya Diwas (PBD). "We
must leave an Asian imprint on the governance and regulation of markets.
We must articulate an alternate third paradigm beyond the two poles
of market capitalism and socialism," he said.
Contending that sustainable economic growth was far too important to
be left entirely to the market, Ravi said free markets were often were
prone to manipulation. "The absence of regulation can and does
create a moral hazard…the menace of forward trading in commodities
or short selling in stock market" posed a grave risk to the sustainability
of the global markets.
With over 800 CEOs, businessmen, bankers and academics representing
the Indian diaspora present at the two-day conclave, Ravi said part
of the global economic slowdown and rising inflation was due to excessive
forward trading in oil. "It is no small coincidence that the conventional
equilibrium theory of demand and supply has failed to explain the extreme
volatility and the rise in global oil prices." The minister felt
that short selling in stocks also contributed to the current crisis
as it was an "invitation to market manipulation".