INDIAN FM CALLS FOR MECHANISM TO STEADY CAPITAL FLOW, OIL PRICES.

AsiaPulse News, April, 2002

WASHINGTON, April 22 Asia Pulse - Indian Finance Minister Yashwant Sinha has called for new institutional arrangements to ensure stable capital flows to developing countries and prevent excessive volatility in oil prices.

He told the Development Committee of the World Bank (WB) and International Monetary Fund (IMF) that those 2 factors were the most vulnerable issues for developing countries.

While a certain amount of volatility in growth rates is inevitable in a market system, he said, the sudden, and in many cases, irrational reversals of investor confidence and private capital flows has had devastating effects on the poor.

"The international community," he said, "has an obligation to put in place mechanisms to address this critical issue....