WORLD
The G20 meeting comes against the backdrop of an emerging sovereign debt crisis in some European countries which are caught in conflicting pulls on continuing the global stimulus package.
Leaders of the world's developed and major emerging economies are meeting here tomorrow to discuss strategies for ensuring a balanced and sustainable growth, even as India favours calibrated exit strategies and is opposed to any universal tax to fund bail out of banks.
The meeting comes against the backdrop of an emerging sovereign debt crisis in some European countries which are
caught in conflicting pulls on continuing the global stimulus
package.
From the Summit in Washington at the height of 2008 financial crisis to the 2009 spring Summit in London when they decided on a global stimulus package to pull the economy out of depression, the leaders are now facing conflicting demands - from the US against early exit to European demand for heavy cutting down of government spending to eliminate deficits on the heels of Euro Zone crisis.
Prime minister Manmohan Singh, who heads a high-power delegation to the fourth Summit of G20, is expected to put
forth the Indian view that it is necessary that the global economy continue to recover in a stable and predictable manner. For that there is need for investment and capital flows as well as an open and rule-based trading system that does not succumb to protectionist tendencies.
At the same time, the economist-prime minister is conscious that the recovery is still fragile and uneven as new worrying signs have emerged in the Euro Zone.
The challenge of the Toronto Summit, being hosted by prime minister Stephen Harper of Cananda, is three-fold,
according to Singh.
They are -- to ensure that global economic recovery is durable, balanced and sustainable, to calibrate exit strategies in the light of growing concerns over expansionary fiscal policies and to focus on medium and long-term structural issues relating to governance issues.
The theme of the Toronto Summit is "Recovery and the New Beginning" in which it is expected to deliberate on a "framework for strong, sustainable and balanced growth".
Planning Commission deputy chairman Montek Singh Ahluwalia, the Indian sherpa at the Summit, and top officials including finance secretary Ashok Chawla are already here ahead of prime minister's arrival working with negotiators on issues like how much stimulus should be continued and how much should be pulled back.
"It all depends on fiscal consolidation of the individual country's economy vis-a-vis the global economy. The countries which are still sluggish want the stimulus to continue and those like India, which have recovered fairly well from the 2008 crisis, would like a phased withdrawal," Indian officials say.
Finance minister Pranab Mukherjee has already set a target of halving the deficit by 2011 and that may be the period by which the stimulus withdrawal could also be attempted domestically, say the officials. But, they also point out, that the challenge is how the countries agree to do it in a coordinated manner.
The other major issue that is likely to come up at the Summit is the strong demand for a universal bank tax for a bail-out of banks, a move triggered by the 2008 financial crisis following the collapse of banks in the US and Europe.
French president Sarkozy and German Chancellor Merkel have written to G-20 leaders pushing the demand for the bank tax. The new coalition government in Britain has already introduced one.
But India has strong reservations on the issue and has made clear its position. New Delhi feels the banks in India have been conservative, a reason that stood them in good stead during the global crisis, and the sector is healthy. The Indian banking norms were sound and the system did not collapse unlike in the West, officials point out.
"I don't think the proposal will go through in an undiluted form. I think it will end up something like those who want can go ahead," an official said, adding in a lighter vein, "We don't like it (the tax). Those who have money don't want the tax. Those who don't have want it."
At the Summit, India is also looking at a framework of reforms of the international financial institutions and markets and to reiterate its opposition to protectionism of any kind. There is a need to take a position on financial sector reforms, fiscal stability board and the Basel norms.
There is also the issue of pushing for reforms of the voting rights in the International Monetary Fund (IMF) where a decision has already been taken to increase the rights to developing countries by 4.6%.
The G-20 Summit starts formally today with an official welcome and reception followed by a working dinner by the Canadian prime minister. On Sunday, the programme includes the Opening Plenary followed by other sessions and the Final Plenary.
The Summit is expected to come out with a declaration containing the strategies before the Summiteers head for Seoul in November for the next meeting.
Singh will have a heavy schedule which includes interaction with leaders of participating countries on the sidelines of the Summit covering a wide range of bilateral, regional and global issues of
mutual interest.
His bilateral engagements include those with US president Barack Obama, new British prime minister David Cameroon, French president Nicolas Sarkozy, Japanese prime minister Naoto Kan besides the host prime minister Harper.
During the bilateral meeting with Harper, India and Canada are set to sign a nuclear deal providing for cooperation in supply of uranium, equipment, research and radiation safety measures in the atomic sector. Agreements are also expected to be signed between the two sides in other areas including mining, education and culture.
Raima Sen mourns Bharat Dev Varma's demise, pens emotional note for 'great father, great husband'
DNA TV Show: Ahead of Maharashtra poll results, MVA, Mahayuti engage in resort politics
Maharashtra: Stage set for assembly poll results; Mahayuti, MVA confident of their victories
All set for vote counting in Jharkhand tomorrow; NDA, JMM-led alliances confident of winning
Watch: Australia star inquires Rishabh Pant about his next IPL team, gets 2-word reply
Shah Rukh Khan’s house Mannat was first offered to his industry rival…, but he refused because...
The Visionary Who Promises a Blue Sky for India: Holger Thorsten Schubart’s G20 Climate Speech
The Surge of High-End Living: Luxury Residential Market to Outpace Other Segments
FeFCon 2024 to be Held in Bangalore: A Premier Event on Fever Management
'That’s wild': Noida man turns cigarette butts into teddy bears in viral video, watch
London Airport evacuates passengers over security threat, thousands stranded
The World’s First Innovative Iron Supplement to Combat Iron Deficiency and Anaemia
Meet grandmother who became fashion icon after trying on her granddaughter’s clothes
IND vs AUS: Rishabh Pant joins Virat Kohli, Rohit Sharma in elite WTC list, becomes 3rd Indian to...
'All scripted drama...': Puneet Superstar allegedly assaulted by influencers in viral video, watch
Actress Ana de Armas caught kissing Cuban President Miguel Díaz-Canel’s son in viral photos
Oreshnik's Shadow: Will Russia's hypersonic missile force west to back down?
‘You’re So Beautiful’: World’s tallest woman meets world’s shortest woman over tea, pics go viral
Delhi-NCR Air Pollution: Consequences of GRAP-4 are drastic, may have adverse effects, says SC
Delhi-NCR Air Pollution: Schools likely to stay closed till..., check city-wise update
Maharashtra: 3 killed, 9 hospitalised after gas leak at fertiliser plant in Sangli
THIS farm is selling a cup of coffee for Rs 28000, but there's a twist, it is...
Chhattisgarh: 10 Maoists killed after encounter with security personnel in Sukma
Mukesh Ambani's SUPERHIT plan for Jio users, offers unlimited 5G access for 1 year for just Rs...
IND vs AUS 1st Test: KL Rahul's dismissal sparks DRS controversy in Perth Test
Dense fog, heavy rain predicted in these states till November 25; check here
Oreshnik Hypersonic Missile: Which nations are within its range?
Bihar teacher, principal reach school in drunken state; know what happened next
'I have faced a lot of...': Arjun Kapoor REVEALS his biggest fear amid break up with Malaika Arora
How millions of Indians may get affected due to US indictment of Gautam Adani in bribery case
Amid divorce rumours with Aishwarya Rai, Abhishek Bachchan says 'missing someone is okay but...'
After Bibles, watches and sneakers, Donald Trump is now selling autographed guitars, price is...
Delhi pollution: Air quality improves to ‘very poor’ category, AQI at...
Vladimir Putin's BIG threat, warns he could strike UK with new ballistic missile if...
Shillong Teer Results TODAY November 22, 2024 Live Updates: Check winning numbers here
Somebody misbehaved with Alia Bhatt on Highway sets then Imtiaz Ali had to...
Zomato CEO Deepinder Goyal reveals twist behind Rs 200000 job fee, closes application window
Days after Ratan Tata's demise, Tata Group's Rs 131000 crore company inks pact with ADB for...