Monday, September 18 2006 15:21 Hrs (IST) - World Time -

Singapore: Warning that the 'development promise' appears to in danger of being broken on account of uncertainty surrounding the WTO talks, India today (Sept 18, 2006) asked industrialised nations to take a lead to put the stalled trade negotiations back on track.

"It is important for the developed countries to take the lead in bringing these (WTO) discussions back on track so that the world and especially the developing countries can reap the promised development dividend, " Indian Finance Minister P Chidambaram said, asking the World Bank to play a proactive role and lend its weight to a pro-development outcome of the trade talks.

Speaking at the policy-making Development Committee of the World Bank here, he said, "India was supportive of the Aid for Trade Agenda as a means of enhancing the capacity in developing countries for realising the gains in trade. But aid for trade cannot be a substitute for the expected development benefits from the successful completion of the Doha Round of trade negotiations."

"While helping build-supply-side capacity and trade-related infrastructure particularly in least developed countries, we need to remind ourselves that Aid for Tradecannot be a substitute for the expected development benefits, particularly on market access, from a successful conclusion of the Doha Round," Chidambaram said.

The IMF has pledged four billion dollar aid for tradeto help poor countries build infrastructure to push up their trade.

India looked forward to the implementation of a robust aid for trade package, he said, adding its effectiveness would, however, require additional predictable and sustainable financing by the donor community.

"Aid-for-Trade funds need to be channeled multilaterally for ensuring maximum effect on the ground, and integrated into country development strategies rather than delivered through multiple vertical funds that may be created for the purpose," Chidambaram said.

British Chancellor of Exchequer Gordon Brown said at the development committee meeting that an 'ambitious and fair' outcome to the Doha Development Round was essential for global growth and poverty reduction, and there cane be no substitute for a successful outcome of the WTO talks.

Brown had in his capacity as Chairman of the IMF's policy making body International Monetery and Financial Committee had yesterday announced the aid for trade.

But he also said it was essential that we maintain the momentum and support for Aid-for-Trade. As donors we need to turn out Aid for Trade commitments into firm and credible financing, within a new aid for trade framework and to take this forward while we seek progress on the Doha Round.

"We also need to provide additional assistance to poor countries to build their infrastructure and capacity to trade, so they can seize the new opportunities created by more open markets," he said.

"We look to the World Bank and International Monetary Fund to continue to strengthen its support for cou ntries in this area, including through analysis of the potential poverty and social impacts of trade liberalisation," Brown said.