PM-ECONOMY

New Delhi, Mar.31 (PTI) Asking industrialised nations
to avoid protectionism in the trade of goods and services,
Indian Prime Minister Manmohan Singh Tuesday said it was
important and necessary for the G-20 Summit to take "credible
decisions" to help reverse the current slowdown and instil a
confidence in the global economy.

In a statement before leaving for London to
participate in the meeting of world leaders to discuss the
economic meltdown, Singh also focussed on the need to ensure
adequate flows of finances to the developing countries to
overcome the reversal of international capital flows.

Singh, who will have his maiden meeting with US
President Barack Obama on Thursday, said the time has come for
the international economic and financial architecture to
reflect contemporary economic strengths.

The Prime Minister, who is undertaking his first trip
abroad after the coronary bypass surgery on January 24, said
considerable amount of preparation has been done for the
Summit.

These preparations relate to provision of coordinated
fiscal stimulus by major economies to offset the decline in
private demand, agreement on a set of principles to plug
loopholes and weaknesses in the supervisory and regulatory
arrangements for the financial institutions, he said.

He underlined the need to undertake effective measures
designed to provide emerging and developing countries adequate
resources to offset the effects of global slowdown on their
economies.

"It is important and necessary for the Summit to take
credible decisions which will help to halt and reverse the
current slowdown and to instill a sense of confidence in the
global economy," he stressed.

"It is an unfortunate reality that the effects of the
slowdown have spread across the world, and developing
countries, particularly those in Africa, are facing its worst
consequences," the Prime Minister said.

He asked the developed countries to steer clear of
protectionism and work towards restructuring and reforming the
international financial institutions.

"There are some issues which require particular focus
such as the need to ensure the adequate flow of finances
to the developing countries to overcome the reversal of
international capital flows, and not retard progress towards
the attainment of the Millennium Development Goals, the need
to avoid protectionism in trade of both goods and services,
and restructuring of international financial institutions.

India, Singh said, has benefitted from growing global
interdependence as manifested in the high growth rate that
the country has achieved over the last five years.

"We would like to ensure that our economy continues to
expand at a healthy rate to meet the principal challenges of
eradicating poverty and ensuring balanced and inclusive
socio-economic development for our people," he said.

"Our economic, financial and banking institutions have
shown great resilience and the fundamentals of our economy
remain strong," he said.

Singh is likely to press the developed countries to
desist from trade barriers and ensure that flow of funds for
development do not suffer.

New Delhi hopes that the London Summit will come out
with clear and strong guidelines on measures for recovery of
global economy and reform of the international financial
institutions. PTI VMN
DEP
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