ID :
53212
Tue, 03/31/2009 - 22:58
Auther :
Shortlink :
https://www.oananews.org//node/53212
The shortlink copeid
India asks developed nations to shun protectionsim,
London/New Delhi, Mar 31 (PTI) As leaders of the world's
richest and influential developing countries prepared to meet
in London on Thursday on how to fix the global economy, India
Tuesday asked industrialised nations to shun protectionism in
trade, a view strongly endorsed by host Britain.
Articulating India's position before he left for London
for the second G-20 summit, Prime Minister Manmohan Singh said
it was important for the grouping to take "credible decisions"
to help halt and reverse the current slowdown and instill a
sense of confidence in the world economy.
British Prime Minister Gordon Brown also stressed that the
G-20 leaders must give "oxygen of confidence" to the global
economy.
"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...the need to avoid protectionism
in trade of both goods and services," said Singh, who is
making his first overseas trip after the coronary by-pass
surgery he underwent on January 24, in a pre-departure
statement in New Delhi.
Endorsing India's views against protectionism, British
Prime Minister Gordown Brown said the current global crisis
should not not make countries "retreat into the dangerous
protectionism which in the end protects no one".
Brown, a former Chancellor of Britain, said the mistakes
of the 1930s should be avoided. "Never return to
protectionism and isolationism of the past," he said at a
welcome ceremony for Australian Prime Minister Kevin Rudd.
There is need for "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...", said Singh, who
is leading a high-level delegation.
Singh while asking developed countries to steer clear of
protectionism said the G-20 should work towards restructuring
and reforming the international financial institutions.
At the summit to be also attended by US President Barack
Obama, Singh is expected to make a strong plea to nations for
avoiding the temptation to resort to protectionism for
short-term gains.
The prime minister said considerable amount of
preparations has been done ahead of the Summit including for
an agreement on a set of principles to plug loopholes and
weaknesses in the supervisory and regulatory arrangements for
the financial institutions.
In a reflection of how the world was looking to India in
finding solutions, the US said it expected New Delhi to play a
greater role along with China in tackling the current
financial crisis. Treasury Secretary Timothy Geithner also
said the US supported bigger responsibilities for India in the
international financial institutions.
The G-20, an informal grouping of Finance Ministers and
Governors of the economies, account for 80 to 90 per cent of
the world's Gross Domestic Product (GDP was atttended at the
level of Heads of Government for the first time in November
last year in Washington.
Manmohan Singh is also expected to voice a strong demand
that multilateral development flows for development should not
not dry up.
Amidst stiff demands from US and the UK that there should
be a stimulus package to kickstart the economy, there are
signs that the Summit, being hosted by Britain, which had
organised a similar conference at the height of the Great
Depression of the 1930s, may not agree on a coordinated action
to pump money into the world economy to get the major
economies out of the worst recession in decades.
It is another story that the earlier British experience
of a global summit in the last century with the presence of
eminent late economist John Maynard Keyenes was not a very
happy experience as it was not seen to be a success then
because of the US' reticence.
But now Britain and US are on the same side campaigning
for governments to pump in more money into a stimulus package
while countries like Germany and France want immediate reforms
of the financial institutions, whose collapse is seen as the
main cause of the crisis.
India has voiced concern that there are already signs of
shrinkage of the global trade in the wake of the economic
slowdown after the financial meltdown triggered by the
collapse of some of the multinational financial institutions.
New Delhi also feels that individual countries will agree
on stimulus package as they feel the need for it.
India would like that developed countries do not resort
to protectionism that would badly hurt the global economy,
especially the developing economies fighting the spill-over
effects of the global downturn.
Another area where India would expect some agreement will
be to see that the present difficulties do not lead to
shrinking of development flows to the poor nations.
The Washington Summit saw as the "root causes of the
current crisis" market participants seeking higher yields
without an adequate appreciation of the risks and failed to
exercise proper due diligence.
"At the same time, weak underwriting standards, unsound
risk management practices, increasingly complex and opaque
financial products, and consequent excessive leverage combined
to create vulnerabilities in the system," said the Declaration
of the Washington Summit on Financial Markets and the World
Economy.
Menon feels the London Summit would agree on an immediate
regulator framework in this regard.
As world leaders begin gathering here, the Australian
Prime Minister has said that negotiations over the level of a
fiscal stimulus may come about at another Summit that may be
needed. "There will be a further summit, well in time for
2010, I assume, which will actually look at what metrics, what
numbers, will be needed then."
Countries like Germany, France, Australia and China are
said to be hesitant about agreeing on further tax giveaways or
benefits increases campaigned by the US and Britain.
There are fears that the London Summit may focus more on
easily achievable goals such as tax havens rather than
ensuring commitment to specific goals on spending and
protectionism.
A draft G-20 communique, leaked to a German news
magazine, suggests that Britain wants the joint statement to
herald a USD 2 trillion fiscal stimulus but this figure still
needs to be agreed. PTI VSC
BDS
NNNN
richest and influential developing countries prepared to meet
in London on Thursday on how to fix the global economy, India
Tuesday asked industrialised nations to shun protectionism in
trade, a view strongly endorsed by host Britain.
Articulating India's position before he left for London
for the second G-20 summit, Prime Minister Manmohan Singh said
it was important for the grouping to take "credible decisions"
to help halt and reverse the current slowdown and instill a
sense of confidence in the world economy.
British Prime Minister Gordon Brown also stressed that the
G-20 leaders must give "oxygen of confidence" to the global
economy.
"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...the need to avoid protectionism
in trade of both goods and services," said Singh, who is
making his first overseas trip after the coronary by-pass
surgery he underwent on January 24, in a pre-departure
statement in New Delhi.
Endorsing India's views against protectionism, British
Prime Minister Gordown Brown said the current global crisis
should not not make countries "retreat into the dangerous
protectionism which in the end protects no one".
Brown, a former Chancellor of Britain, said the mistakes
of the 1930s should be avoided. "Never return to
protectionism and isolationism of the past," he said at a
welcome ceremony for Australian Prime Minister Kevin Rudd.
There is need for "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...", said Singh, who
is leading a high-level delegation.
Singh while asking developed countries to steer clear of
protectionism said the G-20 should work towards restructuring
and reforming the international financial institutions.
At the summit to be also attended by US President Barack
Obama, Singh is expected to make a strong plea to nations for
avoiding the temptation to resort to protectionism for
short-term gains.
The prime minister said considerable amount of
preparations has been done ahead of the Summit including for
an agreement on a set of principles to plug loopholes and
weaknesses in the supervisory and regulatory arrangements for
the financial institutions.
In a reflection of how the world was looking to India in
finding solutions, the US said it expected New Delhi to play a
greater role along with China in tackling the current
financial crisis. Treasury Secretary Timothy Geithner also
said the US supported bigger responsibilities for India in the
international financial institutions.
The G-20, an informal grouping of Finance Ministers and
Governors of the economies, account for 80 to 90 per cent of
the world's Gross Domestic Product (GDP was atttended at the
level of Heads of Government for the first time in November
last year in Washington.
Manmohan Singh is also expected to voice a strong demand
that multilateral development flows for development should not
not dry up.
Amidst stiff demands from US and the UK that there should
be a stimulus package to kickstart the economy, there are
signs that the Summit, being hosted by Britain, which had
organised a similar conference at the height of the Great
Depression of the 1930s, may not agree on a coordinated action
to pump money into the world economy to get the major
economies out of the worst recession in decades.
It is another story that the earlier British experience
of a global summit in the last century with the presence of
eminent late economist John Maynard Keyenes was not a very
happy experience as it was not seen to be a success then
because of the US' reticence.
But now Britain and US are on the same side campaigning
for governments to pump in more money into a stimulus package
while countries like Germany and France want immediate reforms
of the financial institutions, whose collapse is seen as the
main cause of the crisis.
India has voiced concern that there are already signs of
shrinkage of the global trade in the wake of the economic
slowdown after the financial meltdown triggered by the
collapse of some of the multinational financial institutions.
New Delhi also feels that individual countries will agree
on stimulus package as they feel the need for it.
India would like that developed countries do not resort
to protectionism that would badly hurt the global economy,
especially the developing economies fighting the spill-over
effects of the global downturn.
Another area where India would expect some agreement will
be to see that the present difficulties do not lead to
shrinking of development flows to the poor nations.
The Washington Summit saw as the "root causes of the
current crisis" market participants seeking higher yields
without an adequate appreciation of the risks and failed to
exercise proper due diligence.
"At the same time, weak underwriting standards, unsound
risk management practices, increasingly complex and opaque
financial products, and consequent excessive leverage combined
to create vulnerabilities in the system," said the Declaration
of the Washington Summit on Financial Markets and the World
Economy.
Menon feels the London Summit would agree on an immediate
regulator framework in this regard.
As world leaders begin gathering here, the Australian
Prime Minister has said that negotiations over the level of a
fiscal stimulus may come about at another Summit that may be
needed. "There will be a further summit, well in time for
2010, I assume, which will actually look at what metrics, what
numbers, will be needed then."
Countries like Germany, France, Australia and China are
said to be hesitant about agreeing on further tax giveaways or
benefits increases campaigned by the US and Britain.
There are fears that the London Summit may focus more on
easily achievable goals such as tax havens rather than
ensuring commitment to specific goals on spending and
protectionism.
A draft G-20 communique, leaked to a German news
magazine, suggests that Britain wants the joint statement to
herald a USD 2 trillion fiscal stimulus but this figure still
needs to be agreed. PTI VSC
BDS
NNNN