(Recasts with more quotes)
By Surojit Gupta and Rajkumar Ray
NEW DELHI, Nov 21 (Reuters) - India's prime minister said a
meeting of Group of 20 countries last week gave developing
nations the kind of platform they sought but more work was
needed to tackle the severe global downturn.
Global institutions must be made more representative of
developing nations in today's interdependent world, but the
summit meeting in Washington was a step forward, Manmohan Singh
said on Friday.
"So I would say that there is a ray of hope that the world
leadership of the leaders who matter have sat together, talked
constructively, have come out with an outcome which should
inspire confidence of the markets," Singh told a conference.
"But much work remains to be done. There are still many
uncertainties about the depths of the recession, its possible
length. So it will test everyone but a hopeful beginning has
been made to tackle this problem."
Singh said he had been pessimistic about last weekend's
meeting before he went, as developing nations had been invited
to G8 meetings of developed nations before without their
thinking having any impact on the outcome.
"I must confess that I was proved wrong. This meeting was
very well prepared. For the first time the developing countries
voice was heard with respect," he said.
G20 leaders from major industrialised and developing
nations pledged steps to rescue the global economy from the
worst financial crisis in over 70 years.
The turmoil has shaken financial markets worldwide,
disrupted channels of credit between banks and industry, and
pushed some major economies into recession.
The plan forged at the summit included short-term action
such as fiscal stimulus to boost domestic demand, aiming to
restart world trade talks, and expanding a financial stability
forum to emerging economies.
Leaders also agreed on longer-term steps, such as reforming
the International Monetary Fund, with finance ministers set to
work on specifics by March 31, ahead of another summit in
April.
Finance Minister Palaniappan Chidambaram said earlier in
the week it was not quite clear to India whether U.S.
President-elect Barack Obama's incoming administration was
fully on board with what the Bush administration agreed at the
summit.
But Singh said even though Obama did not attend the
meeting, from what he had heard about the president-elect's
viewpoint he thought "there are reasons to hope".
Indian politicians have pointed out the crisis, which began
with the U.S. mortgage market, is not of their making, and
Singh said the poor of the world should not pay the price for
"the profligacy of the rich and delinquency of a few".
Global problems required global solutions, he said.
"The voice of the developing world must be heard in the
high councils of global decision-making," Singh told the
conference in New Delhi.
Indian authorities are struggling to shore up growth
against the impact of the crisis and have taken a host of steps
including sharp rate cuts to fend off damage to the broader
economy.
Singh said despite an adverse international environment
India had the capacity to sustain a growth rate of about 8
percent.
"We will, through the use of fiscal policies, through the
use of monetary policies, through the use of public investment,
ensure that the shortage of demand coming as it is from the
global slowdown is neutralised to the maximum possible extent,"
he said.
(Writing by Charlotte Cooper; Editing by Mark Williams and
Kazunori Takada)
- 
- 
- 
Welcome,
Guest!
News
