'Strategies chalked out at G20 not enough to tackle recession'

London, Apr 5 (PTI) The strategies chalked out by G-20
countries will not be enough to tackle the recession and
revive economic growth, leading NRI (Non-Resident Indians)
entrepreneur S P Hinduja has cautioned.

In a statement on the outcome of the G-20 summit, the
Chairman of the Hinduja Group with interests in banking,
automobiles, energy and several other fields, said the London
meet has created "some hope and confidence" on a short-term
basis "but the strategies evolved will not be enough to fight
the recession and depression, and to revive economic growth."

Noting that only a proportionately small amount of the
resources being made available to the IMF has been allocated
to poor countries, he said "the developed world has to
immediately address the challenges facing those on low incomes
in emerging markets."

Conceding that banking institutions and certain
industries should be rescued from going bankrupt and employees
losing jobs, Hinduja said "while rescuing them, it has to be
ensured that right teams are in place."

He said laws should be enacted for vetting membership of
boards and top management of banks. Without resorting to
protectionism, governments should put systems in place to
regulate financial institutions.

"The first and most important step is to secure
depositors up to a much higher level than at present," he
said.

Hinduja said governments should ensure that clients are
rescued rather than allow banks to use bailout for
administrative costs, bonuses and manipulations.

He hailed the steps taken by Prime Minister Manmohan
Singh to tackle the downturn and said "further precautions
need to be taken depending on the impact of the crisis in the
western world."

He wanted more unified efforts to be made to reduce the
span of the recession.

Hinduja, who is Chairman of a Geneva-based bank, felt the
suggestions made by the US Treasury Secretary to encourage
banking giants to split themselves into several separate
entities, deserved consideration. On the other hand, "merging
already large institutions makes monitoring and regulation
humanly impossible."

He said funds should be deployed to guarantee
re-employment and create new jobs. "Spending should focus on
investing in people and technology to create long-lasting,
incentive-driven jobs that will ensure economic growth for
decades." PTI HSR
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