G-20: India to seek greater role in managing global economy


Pittsburgh : As the leaders of the world’s 20 largest economies gather here Thursday to review their efforts to stem global recession, India is expected to pitch for a more proactive role in the management of the global economy.

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As Prime Minister Manmohan Singh who arrives here put it before embarking for the summit, “It is necessary for India to engage in the management of the world economy because we have a lot at stake, and a lot to contribute.” He will also “convey India’s interest in seeing the earliest possible return to trend growth and stabilisation of the banking and financial sectors in the advanced economies, because this directly affects our exports, capital inflows and investment.”

Having weathered the global meltdown much better than others, a confident India is also expected to seek reform of international financial bodies and forcefully oppose all forms of protectionism that may affect global economic recovery.

As Manmohan Singh has said India “would also like to see a strong message to emerge from Pittsburgh against protectionism in all its forms, whether trade in goods, services, investment or financial flows.”

Planning Commission Deputy Chairman Montek Singh Ahluwalia will be the prime minister’s ‘sherpa’ or key aide at the two-day summit hosted by US President Barack Obama.

Ahead of the Pittsburgh Summit bringing together a group of countries that accounts for 90 percent of the global output, 80 percent of world trade and two-thirds of humanity, India has also committed to invest up to $10 billion in the IMF to help replenish the fund to help countries struggling in the current financial crisis.

Meeting amid signs of a fading recession, the G-20 leaders are expected to echo their finance ministers and central bank governors who said earlier this month that while it was important to start discussing exit strategies, it was too early to begin carrying them out.

Officials representing the G-20 members have also said it’s unlikely the nations’ leaders will make additional financial commitments on the scale of those made in April, when the G-20 leaders agreed to triple the resources of the IMF, which acts as the world’s lender of last resort.

The G-20 members are working on a more detailed framework for regulatory reform along with firm deadlines. Ultimately, though, it is up to national legislatures to follow through. US Congress is working on a proposal to overhaul financial regulation.

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