'India, China should help finance Eurozone debt crisis'
Countries such as India and China should help finance the Eurozone debt crisis in return for investment in their own countries, SP Hinduja, leading NRI entrepreneur and chairman of the Hinduja Group has said.business Updated: Nov 02, 2011 09:12 IST
Countries such as India and China should help finance the Eurozone debt crisis in return for investment in their own countries, S P Hinduja, leading NRI entrepreneur and Chairman of the Hinduja Group has said.
In a letter addressed to leaders of the G-20 meeting to be held at Cannes in France, Hinduja urged them to adopt a "two-way street solution" to the current financial crisis.
He said, "the foremost need is to urgently bring about an understanding among the Eurozone leaders to deal with the sovereign debt crisis of its members."
"The emerging economies, such as India and China, can significantly contribute to the easing of the crisis. For example, India plans USD 1 trillion worth of investments in infrastructure in the next five years, creating job opportunities for its economic partners," he said.
With its population of 1.2 billion and an expanding middle-class, India has immense consuming power potential, he said.
Referring to the two-way street solution, Hinduja said "implementation of infrastructure projects in developing countries with investments or export credits from developed countries will yield dividends for both investor and recipient countries."
It would also help in poverty alleviation in developing countries that, in turn, will reduce the dangers of internal and external conflicts, he said.
"In implementing such infrastructure projects, he said, the focus should be on inclusive growth, employment and fast delivery of benefits to the common man," Hinduja said.
"In developing countries, to achieve inclusive growth, key business infrastructure should be promoted in semi-urban and rural areas, with private economic development initiatives encouraged. An international platform can be explored to promote public-private partnerships," he said.
To encourage flow of capital into social and physical infrastructure, the governments of emerging countries should consider giving the investors a total package of projects containing all the required approvals from all agencies, instead of requiring them to run around politicians, bureaucrats and government departments, he said.
Simplification of project clearance procedures would avoid delay and corruption and facilitate speedy implementation.
He said, "The need of the hour is to emphasize business ethics. The focus should be on the interest of the common man in harmony with nature and the environment."
Employment generation should be given priority to ensure an even distribution of the fruits of growth so that the rise of social tensions within countries was avoided and public sentiment did not increasingly turn against globalisation which has in many ways tied the economies of the developed and developing countries in win-win situations, Hinduja said.
He said, "The leading economies should aim for inclusive sustainable growth with respect for the environment."
The focus should be on living in a balance with nature, which is the only way to overcome the longer term global challenges of poverty and conflict or the immediate ones of the current financial crisis, he said.