G20 summit: India against protectionist policies

As the leaders of world’s 20 biggest economies gathered in Washington on Friday to take part in the two-day summit of Group of Twenty (G20) hosted by US president George W Bush, the Prime Minister Manmohan Singh is standing by to put forth the need for a greater inclusivity in the international financial system, and also to avoid protectionist policies in a way to combat the global financial crisis.

Indian Finance Minister P. Chidambaram, who is accompanying the Prime Minister for the meet, on his way to Washington said: 'The G7 is too narrow and too small; hence, an inclusive system which can serve as a global oversight and serve as a nearly warning system is needed.'

In an attempt to deal with the present economic melt down and to bring some kind of long term reforms to prevent any future recurrence, it has also been proposed to develop a new body to supervise the regulation of global financial markets and institution along with a greater international cooperation.

India, taking a three fold stand on the global financial crunch has pressed for the protection and growth of the developing economies with greater grants from the World Bank and the International Monetary Fund so that the developmental projects can continue.

To put forward India’s stand in the summit, the Planning Commission Deputy Chairman Montek Singh Ahluwalia and Department of Economic Affairs Secretary Ashok Chawla have been in Washington since Wednesday preparing the groundwork for the summit.

Speaking ahead of the summit on Friday, Ahluwalia expressed hope that the summit would reach to an agreement to counter the recessionary tendencies, and support for fiscal stimulus actions that restore confidence in the global economic situation.