Rich countries should rein in spreading economic crisis: Ashok Chawla

By Dipankar De Sarkar, IANS,

London : India’s Finance Secretary Ashok Chawla said Saturday developed countries need to “do more” to help stem the spreading global economic slide.

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“The downturn has now begun to spread from the financial to the real sector,” Chawla warned ahead of a key meeting Sunday of the deputies of treasuries and central banks from the Group of 20 (G20) countries.

The meeting is the first step in the run-up to the April 2 summit of G20 leaders, which is expected to be attended by US President Barack Obama and others.

India was also keen to see greater capital flows through international financial institutions to help bridge current shortfalls, Chawla told IANS.

However, he added, all proposals were at “a melting pot stage at the moment”.

The meeting will consider 47 action points flowing from the previous summit held in Washington in November last year under four headings: regulation, international financial stability, reform of international financial institutions, and World Bank issues.

These will then be presented in the form of draft reports for consideration by a meeting of the G20 finance ministers in mid-March.

The G20 comprises Argentina, Australia, Brazil, Britain, Canada, China, European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey and the US.