KUALA LUMPUR: There is a need for global coordination to address the global political and economic imbalance, and Asia, China and India in particular, have considerable scope to play a larger role in this process, said a theme study released by Rabobank on globalisation.      

The study Globalisation At A Crossroads was published to coincide with Rabobank's Outlook 2010 publication. It also pointed out that as financial and economic conditions normalise, the dynamic Asia region is benefiting from rebounding trade flows.

In a statement yesterday, Rabobank said its economists noted that the emerging world had reported a trade surplus in the past decade, while the industrialised world had posted a trade deficit.

It said this meant that the emerging world had in effect been financing the industrial countries' trade deficit.

The Netherlands-based Rabobank said in view of the fact that political and economic balances of power were inextricably interlinked, it was bound to have considerable effect on the global political stage.

It said while cyclical factors were improving global imbalances currently as developed nations (most of which are deficit nations) experienced weak demand conditions, there was a need for global coordination to entrench the factors that would drive re-balancing over time.

Rabobank said the study called for daring politicians to stand up and be heard.

"We expect to increasingly hear voices from the developing world in the debate and here is an opportunity for Asia to have its voice heard. China and India, in particular, have considerable scope to play a larger role reflecting their development momentum and large populations," said Dr Adrian Foster, Asia head of financial markets research for Rabobank.

"We view a joint approach to these imbalances in both the countries with deficits and those with surpluses as the only sustainable solution. It is crucially important that Europe speaks with a single, strong voice on the major economic and trade issues. We will otherwise gradually become marginalised," says Rabobank executive board chairman Piet Moerland.