India's Prime Minister Atal Bihari Vajpayee thinks impoverished Asian nations hold the cure for the new economy's troubles. He told the Asia Society conference technology had boosted productivity in developed nations to the point where they could not consume the increasing amount of goods and services available. The only place left to look for expanding markets was in nations such as India and China. Rich nations were witnessing a technology-induced crisis of abundance, he said. Asia, which is home to more than half the world's population can become a reliable propeller of technology creation as well as technology consumption in the new century. But before Asian consumers can start buying more technology, they need to overcome their own economic difficulties. Even with an annual growth in gross domestic product of close to 10 per cent, the majority of India's population still lives in poverty, and is in no position to buy luxury items such as computers and software. About half of the one billion people in the world's second most populous nation are illiterate, and fall on the wrong side of the digital divide between technological haves and have-nots. Mr Vajpayee called on more affluent nations and multinational corporations to enter into a co-operative relationship with developing countries to raise their standard of living to the point where they could participate more fully in the global economy. He pointed out that, even with their developing economies, Asians were already the major users of mobile phones and consumer electronics, and so increased prosperity in the region would benefit countries which exported technology. 'I am emphasising the need for a greater co-operative approach towards global development in which the rapid growth in developing countries serves as a stimulus for sustainable growth in the developed economies,' he said. Mr Vajpayee accused the West of thwarting India's development by blocking the transfer of strategic technology in the past. He singled out the aerospace sector as one area where his nation's engineers and scientists have had to use valuable resources to develop an indigenous industry because there was no option. Mr Vajpayee admitted he was a layman when it came to the new economy and proved his point during his speech when he referred to the acronym IT as 'international technology'. But, he said all that Asians needed to know about the new economy could be seen in the success of Bangalore, a city of five million people and home to 300 technology companies. It exports US$1.5 billion worth of software each year. Encouraged by aggressive government policies and supported by a well-educated, English-speaking workforce, Bangalore has become one of the top 10 software-producing cities in the world. It hosts 100 international firms. With a growing middle class of relatively affluent IT workers, Bangalore has become the standard against which many other Asian cities measure their hopes for future development. Chief Minister of Karnataka state, S. M. Krishna, said it was appropriate that the Asia Society chose the city to discuss the future of technology in Asia. 'I intend to establish this state as a leader in the global economic order,' he said. Mr Krishna said the success of the IT industry in India had grown to rival the spectacle of another national icon - the Taj Mahal. More than 800 delegates from eight countries are in Bangalore for the conference. Asia Society president Nicholas Platt said the crash of technology stocks and dotcom failures had only intensified peoples' interest in what would come next. 'While the past few months have caused some challenges for technology industries, the potential remains great,' he said. Visa-free travel call for IT workers, Page 7