India got most of what it wanted at G20 summit

India got most of what it wanted at G20 summit

INDIA’S ROLE AT THE G20 SUMMIT IN LONDON

The 76-year-old, Manmohan Singh who pursued his higher education in economics with degrees from Oxford and Cambridge universities played a pivotol role at the G20 Summit held in London. Straddling the rich and poor worlds, Manmohan Singh has strongly argued the case for not only the leading emerging economies around the G20 table, but also some of the world’s poorest nations who are largely unrepresented at the London summit. “An agreement for effective, credible fiscal stimulus is the responsibility of all major economies," Manmohan Singh said, in an interview published in the prestigious Financial Times. US President Barack Obama said the summit marked a “turning point” in the pursuit of economic recovery and made progress in reforming a “failed regulatory system”. “It was historic because of the size and the scope of the challenge that we face and because of the timeliness and the magnitude of our response," he said. Prime Minister Manmohan Singh has warned rich nations against protectionism and called for $500 billion fresh funds from the Internmational Monetary Fund to help developing countries cope with the worst financial crisis in the last sixty years. An issue of vital concern to developing countries is the rise of protectionist sentiment in the industrialised world, said Manmohan Singh. “This phenomenon is not surprising, given the downturn in economic activity and the rise of unemployment. However, it will be a test of leadership whether we persuade the public that we must not repeat past mistakes," he added. “We know that the great depression was as deep and prolonged as it was because countries resorted to protectionist responses, leading to downward spiral." “This is the worst recession in 60 years and is generating negative expectations which threaten a downward spiral if not corrected. The pain is being felt in industrialised countries and in developing countries." Prime Minister Manmohan Singh also suggested several other steps and urged the G20 leaders to demonstrate their willingness to help.
These include:
* Increasing the capital of Asian Development Bank by 20 per cent;
* Concrete steps to revive trade finance, and expansion of lending by export credit agencies;
* Stronger regulation and improved supervision of global financial system;
* Bring tax havens and non-cooperating jurisdictions under closer scrutiny;
India’s economy has continued to grow faster than most around the world, although it has now slowed from 9 percent growth to about 5 percent, as exports have fallen off significantly. But unlike many G-20 nations that are experiencing stark economic times, India has not struggled as much, in part because much of its growth is tied to domestic rather than international markets. Under Manmohan Sigh’s leadership, India’s economy has continued to grow faster than most around the world, although it has now slowed from 9 percent growth to about 5 percent, as exports have fallen off significantly. But unlike many G-20 nations that are experiencing stark economic times, India has not struggled as much, in part because much of its growth is tied to domestic rather than international markets. The top 20 economic powers, including India, has agreed to inject $ 1 trillion in the global financial system, regulate the banking system and credit rating agencies as part of efforts to tackle the financial downturn - the worst since 1930s.