PUTRAJAYA, Malaysia, 16 October 2003 — President Pervez Musharraf said yesterday that the Muslim world must choose between extremism and economic growth to solve its many problems.

Speaking at a business forum alongside a summit of the Organization of the Islamic Conference, Musharraf said the 57-member group should reshape itself to focus more on trade and economic development.

“We stand at the crossroads of our future destiny,” he said. “We have to decide whether militancy, extremism and confrontation will lead us to our emancipation, or a focus on our socio-economic well-being will benefit us.”

Musharraf, whose country has been torn by violence by extremists, said poverty, government mismanagement and frustration over international disputes were fueling anger among Muslims.

“Politically we find ourselves at the center of most conflicts and disputes,” said Musharraf, an army general.

He said the aftermath of the Sept. 11, 2001, terrorist attacks in the US had placed Muslims in a greater dilemma.

“While on one side, attempts at resolution of disputes are not making much headway — whatever the reasons — on the other side, an anger at being wronged (that is) leading to frustration, hopelessness, deprivation and a sense of powerlessness is rising in Muslim society.”

This is fueling hatred, extremism and militancy, and diverting Muslim governments’ energy from economic development, he said.

Islamic leaders devoted a day yesterday before regular summit talks to discuss how the Islamic world could begin catching up with a West that dominates the world economy.

Delegates said greater trade and investment among Islamic countries would help end alleged victimization by the West.

In his speech, Musharraf said Muslims were one fifth of the world’s population, occupied one fifth of its land mass, owned 70 percent of its energy resources and supplied 40 percent its exported raw materials.

“But the OIC has failed to convert (its members’) abundant human and physical resources into economic achievement,” he said.

Combined, OIC countries have a smaller share of the world’s gross domestic product than Japan, are wracked by debt and — with the exception of a few Arab countries — are among the poorest and least developed countries, he said.

Musharraf said OIC countries must undertake reform at home in areas such as currency controls, corporate governance and the judiciary to become more attractive to foreign investors.

As a group, the OIC should participate more actively in regional economic forums in South Asia, Southeast Asia and Africa, do more to encourage business ventures and consider allowing trading across member countries’ stock exchanges, he said.

He also proposed that the OIC appoint a team of top business leaders from member countries to advise the organization on a development plan which would be presented at a special OIC economic summit.