US calls for 'balanced global economy' at G-20 summit
25 Sep 2009
Even as the US intensified efforts to clinch an agreement on fostering "sustainable growth" at the G20 summit at Pittsburg, several countries, including India, have supported an extension of the global economic stimulus package, which they feel is vital for accelerating the recovery process.
However, US officials seem to be confident of achieving a broad consensus at the preparatory meetings on the need for higher capital reserve requirements in banks and other financial institutions. Financial institutions collapsed last year due to the lack of capital reserves.
The US draft of the G-20 summit articulates Washington's position when it asks countries to agree to 'mutual assessment' to be monitored by the International Monetary Fund to ensure that 'policies pursued by individual countries are collectively consistent with more sustainable and balanced trajectories for the global economy'.
But the draft has failed to find acceptance with countries like Germany and Brazil, which have expressed reservations. China and Britain are reportedly not averse to such an agreement.
Prime minister Manmohan Singh, who is leading the Indian delegation, is expected to pitch strongly for the continuance of the stimulus regime to speed the process of global recovery from the worst economic crisis since the Great Depression of 1930s.
Meanwhile, the Global Financial Integrity (GFI) has urged leaders the G20 leaders to work towards transparency in global finance and curtailing the flow of illicit finance.
