Amid recessionary fears in advanced economies, India's finance minister Pranab Mukherjee has called for channelising global surpluses to build infrastructure in developing nations to boost world economy.
Insisting that growth process needs to be made more broad-based and especially strengthened in developing countries, he said the G20 needs to focus more sharply on the development aspects."If we need to add demand to the global economy to offset the moderation of demand by industrialised countries as they contract final output, perhaps a good way of doing this is to expand infrastructure investment in developing economies," Mukherjee said.
He was speaking at the G20 Finance Ministers' and Central Bank Governors' dinner meeting here last evening. G20 is a grouping of developed and developing nations.
Mukherjee said many emerging economies have developed the capacity to grow rapidly but are constrained by poor infrastructure.
“Financing infrastructure development in these economies could contribute to sustainable global growth,” he said.
The upcoming G20 Cannes Summit should focus on medium-term growth, he said. “...our medium term action plan for Cannes may not seem credible unless it addresses short-term growth and stability concerns as well.”
Mukherjee said the stress in euro zone and policy options of handling them should be in the G20 Framework.