This realisation is prompting all concerned, including US leaders, to think anew about globalisation and find out the challenges faced by this process. Globalisation, in short, offers four main challenges. They are:

-To ensure that its fruits extend to all. Most forecasts say economic growth in the developed world will slow and the expanding markets in developing countries are needed to ensure that living standards keep rising. Four billion people exist on less than $1,500.00 a year. Globalisation can lift them from poverty and turn them into customers.

-To calm the fear that growth is destabilising. The Asian crisis, threatening some of the most formidable economic competitors in the world, amplifies the fear of globalisation. Still the cost of being left behind by globalisation is usually much greater than the potential for instability.

-To assure wealthier nations that international competition will not start a race to the bottom. Polls now show that more and more people are blaming globalised trade and investment for economic upheavals in established economies like the US. But there is concrete evidence that stagnant wages in the US and unemployment in Europe have other causes.

-To address the problems that are complicated by extended trade, investment, technology and communication. The ability to confront problems like environmental degradation, disease, crime, and terrorism will depend on increasing global co-operation.

Undoubtedly, globalisation of trade and investment has weakened the governments and has made life less predictable for individuals who feel skeptical about fair distribution of its benefits quite justifiably. But those shortcomings can be mended by willing co-operation of all governments -- large or small, poor or rich -- and not by drifting from each other. With larger governments in every country now envisaged, it will be the duty of all governments to join hands together to solve their collective global problems in every sphere of life. In order for this to happen, individuals have to be aware of their duties and have to struggle to acquire countervailing power by using the strong forces of globalisation in order to keep their governments on the right track and prevent them from being monopolised by vested interests as at present.

As an important first step in addressing the challenges of globalisation it is therefore proposed that a meeting of group of world leaders from the old industrial countries, emerging economic powers, and those countries facing marginalisation be convened as early as possible. Existing international groupings are inadequate. The G7 of leading international nations is too narrow in membership. The World Bank and IMF are too focused on finance and too busy to do the errands of the US and the big industrial nations in Europe. Maybe SAARC countries may come in forefront and take the initiative in the matter and project a bold image of itself.

Unlike G7, the meeting should include countries representing all regions and levels of development. A group of about two dozen leaders would be big enough to allow broad participation, but small enough for all to have a say. Participating governments would decide the agenda. Better still, a committee of wise men and women chosen by these governments suggest an agenda covering the challenges of globalisation. It is also essential that this conference will have enough women, since women's rights are now closely linked with globalisation.

A word of caution may perhaps be in order in this respect. While drawing up an agreed agenda, particular consideration should be given at the outset to developing countries concerns over the efforts of integration of their economies into the existing asymmetrical global economy and to put the free movement of capital at the centre of the development paradigm. They feel very strongly that the neo-liberal economic framework underlying structural adjustment programmes overlooks the disastrous effects on their economies. This perception is particularly strong in Africa where a New Partnership for African Development (NEPAD) has recently been launched. They want to be reassured that past prescriptions will not be presented to them in a different package. Furthermore, the committee has also to explore and find out how greater predictability in donor assistance, increased resource flows, minimum conditionalities and acceptance of mutual accountability between donors and recipients through the establishment of an external partner's performance review can be ensured. Without resolving these issues the proposed exercise may be non-starter.

The challenges now faced by globalisation are among the most difficult facing our world today and are straining the abilities of governments to confront them independently. The overriding facts are, we cannot hide from globalisation, and global problems can be solved only by global co-operation. A meeting may not solve all problems, but collective action can be a first step in generating the confidence needed to do so.

The time for such action is now. After the Iraq war and in the face of recent outsourcing of manufacturing and service jobs from America becoming an election issue, the US perhaps can be brought to the table to discuss these problems by leaving behind its individual efforts to have bilateral Trade and Investment Framework Agreement (TIFA) with individual countries. No one would like TIFA to take the place of the so-called "Washington Consensus."

The opening sentence of the recent World Report on "A Fair Globalization: Creating Opportunity for All." co-chaired by the Presidents of Finland and Tanzania runs as follows: "The current path of globalisation must change. Too few share its benefits. Too many have no voice in its design and no influence on its course."

The above proposals are aimed at mending this flaw.

A.K.N. Ahmed is a former Governor of Bangladesh Bank.