G-20 pledges to deal global crisis strategically

The London Summit concluded on Thursday with strong determination displayed by G20 leaders to deal strategically the worst economic crisis since the Great Depression in a time bound manner and pledged an additional 1.1 trillion dollars to the International Monetary Fund (IMF) and other institutions.

British Prime Minister Gordon Brown, who hosted the Summit, said that out of these over one trillion dollars, 250 billion dollars will be given to IMF to lend at cheaper rates to developing countries in the form of Special Drawing Rights (SDRs).

Prime Minister Manmohan Singh, who advocated strongly for the reforms and restructuring of the international financial institutions –the World Bank and the International Monetary Fund, expressed happiness by saying that G20 have agreed to expand the resources of the IMF and ADB and also to bring forward the quota review in the IMF.

The Prime Minister Manmohan Singh though said the developed countries would have to take more such efforts if the world is to make a 2010 recovery from the current economic crisis, as such measures are not adequate.

Underscoring the need of capital flows to “developing countries” by providing adequate resources to the IMF, the Prime Minister said: “India does not need IMF funding but we have been in favour of expanding IMF resources as this will restore confidence in developing countries that need assistance.”

This global crisis requires global solution. Developing countries are not responsible for the birth of this crisis but unfortunately they are the worst victims of it, Singh said while addressing press conference after the Summit. He said that the world leaders agreed that “we must tackle the crisis in a way that does not create other problems for the future.”

“For instance, protectionism or restrictions on the free flow of trade and persons would be counter productive. Nor can development be halted or sacrificed in search for solutions to the financial crisis. Hence there is need for special attention to the needs of developing countries.”

At the end of press conference Singh mentioned his meetings with Russian President Medvedev, Chinese President Hu Jintao, British Prime Minster Gordon Brown and US President Barack Obama, and others.

With Brown, the PM said, we reviewed bilateral relationship and discussed ways of taking India-UK relations forward. “India and the UK enjoy a close partnership in diverse fields of human endeavour. We are determined to and confident of carrying this partnership forward.”

PM Singh also said he met with President Barack Obama and reviewed bilateral relations. We discussed several positive and constructive steps to take the India-US global partnership forward. We also discussed regional and global issues, including the threat that terrorism emanating from our neighbourhood and the international efforts that are require to deal with this problem. “This was our first meeting and was marked by exceptional warmth and cordiality,” he said.

When asked about the India-Pakistan relations, resuming of dialogue and the Kashmir issue, the Prime Minister said that onus for normalisation of relations between the two countries rests with Pakistan. The composite dialogue with Pakistan cannot proceed until Pakistan sincerely fulfils its commitment to bring to book the perpetrators of the Mumbai attacks. Pakistan must convince us that it is absolutely sincere about its commitment that it will not allow its territory for any terrorist activities against India.

“As far as Kashmir is concerned, we have always said that we are willing to discuss bilaterally all outstanding issues, which bedeviled the relation of our two countries. But let me say that these relations or these discussions cannot proceed if hundreds of people as happened in Mumbai are being killed,” Dr. Singh said.