Two good things for India emerged at the meeting of Group of 20 (G20) finance ministers at the weekend at a posh Sussex hotel.
One was a commitment to reform the International Monetary Fund (IMF) and World Bank, giving more weight and voting power to newer economic powers like China and India, and changing the informal agreement that has made US and Europe always provide for the leaders of the two institutions.
The other was the inclusion in the agreements at the meet a commitment to fighting all forms of protectionism, and the restoration of bank lending. The G20 minister managed a consensus to revive the world’s crisis-hit economy but Germany and France threw cold water on British Prime Minister Gordon Brown’s grand plan to save the global economy.
The G20 represents economies that account for 85 per cent of the world’s output.
The emerging economies, it was clear, could not help in financial stimulus.
In a joint statement they said, “We are committed to deliver the scale of sustained effort necessary to restore growth.”
British Chancellor Alistair Darling, who had been at pains to play down differences said after the meeting that they agreed the IMF should be given more money. He added that the G20 recognised the “sense of emergency” surrounding the world economy.