Manmohan slams protectionism, seeks greater say for emerging economies

Indian prime minister Manmohan Singh today called for a united stand by the Group of 20 major economies against trade protectionism and has sought greater role for India and other emerging economies in the management of the global financial system.

"It is necessary for India to engage in the management of the world economy because we have a lot at stake, and a lot to contribute", he said ahead of a summit of the Group of 20 major economies in Pittsburg, US.

"An early return to trend growth and stabilisation of the banking and financial sectors in the advanced economies is in India's interest because this directly affects our exports, capital inflows and investment," he said.

He also called for a continuous increase in the capital base of multilateral development banks to finance the massive infrastructure needs of emerging markets.

The Pittsburgh summit should focus on medium and long-term issues such as a framework for sustainable and balanced growth, strengthening the international financial regulatory system, reforming the mandate mission and governance of the IMF and development banks, strengthening support for the most vulnerable, an open global economy and energy and climate change, he said.

"The expansion and strengthening of the erstwhile Financial Stability Forum, and now the Financial Stability Board, and the Basel Committee on Banking Supervision was a step in the right direction to address the regulatory aspects," he said, adding that the process of governance reform of international financial institutions should be in a way to give greater voice and representation to under-represented countries.