Iran's Ahmadinejad Says Economic Liberalism Failed

TEHRAN - Iranian President Mahmoud Ahmadinejad told regional leaders on Wednesday that the capitalist system was close to collapse.

Opening a one-day summit of the 10-nation Economic Cooperation Organisation (ECO) including Turkey, Pakistan and other neighbours, he also suggested a single currency should be used in trade between members.

"After the collapse of the closed socialist economy, the capitalist economy is also on the verge of collapse," Ahmadinejad said in a speech.

"The liberal economy and the free market have failed," he said, pointing to the use of "thousands of billions of dollars" to bail out Western banks and companies.
Like other big oil producers, Iran is facing falling revenue after crude prices plunged about $100 a barrel from a peak of $147 in July, hurting its main source of income. It is also struggling with double-digit inflation.

Iran, Turkey and Pakistan are the founding members of ECO, which was set up in 1985 and now includes seven other regional nations, Afghanistan among them.

The Tehran meeting is expected to discuss ways to boost trade and economic cooperation in a region which boasts major energy resources.

Ahmadinejad made a series of recommendations, including currency cooperation. "The process of obtaining one single currency in the trade and exchanges among members, and in the next stages with other countries and neighbours, should be designed," he said. (reuters)(//ahm)