New Delhi, Jan 08: India is hopeful of a stronger
response to the global economic crisis from the US President-elect Barack Obama, who assumes office later in the month.
"If the new US administration does, what has been said
they intended to do, it will be certainly a very huge
stimulus," a top official in the Planning Commission said.
The new US administration will be even stronger in its
response to the crisis, the official said. The new US
administration under Obama will take over from President
George Bush on January 21.
Not only India, the entire developing world would be
anxiously watching the steps to be taken by the new US
administration to deal with possibly the the worst economic
crisis which originated in America.
Obama had unrolled hugely ambitious agenda to tide over
the crisis that outlined his plan to create 2.5 million jobs
in coming years to rebuild roads and bridges and modernise
schools while developing alternative energy sources among
other measures.
Obama, who stayed away from the Washington summit
earlier, is also expected to attend the G-20 leaders meet to
discuss the global economic crisis on April 2.
"The crucial G-20 will be judged as to how the developed
nations respond to the collateral damage on developing
countries arising out of financial weakness surfaced there,"
the top official said.
The meet, he said, will be judged by whether the
developed nations respond substantially to the impact of the
economic slowdown on developing nations.
Stating G-20 is a particular forum for cooperation, he
said, it was not that the international community was not
responding but there were differences on stimulus issue.
"Germany and Japan were not convinced about the stimulus
arguement. There's a difference within Europe - the French say
one thing and the German the other," the official said.
Part of the logic of G-20 meet is coordination, he said.
"Reason for coordination is simple - if you are going to
expand demand in your country and no body expands, then the
expansion of demands is met through import and other nations
benefit from your stimulus. If everybody expands demand they
benefit from your stimulus and you benefit from their
stimulus."
At the moment when G-20 meets in April, it would be a
good opportunity to judge that there has been some effective
coordination where everybody expresses satisfaction," he said.
The official said the coordination would be needed on
issues ranging from degree of stimulus to trade negotiations.
"We are certainly doing our bid to stimulate the economy.
China is also clear but what about other bigger economies?
Developed countries should be supportive of exports of
developing nations," the official said.
The G-20 summit will deal with major questions of
economic action that are necessary. Prior to the summit Group
of 20 finance ministers will gather in Britain on March 14 for
a meeting to lay the groundwork for a leaders' summit.
Britain has taken over the rotating presidency of the G20
group, which includes rich nations such as the US and Japan as
well as the newly-developing economies like India and China.
Bureau Report