G-15 for effective monitoring of global financial centres

Ammar Zaidi
Tehran, May 18 (PTI) The Group of Fifteen (G-15)
developing countries, including India, have called for
effective supervision of major financial centres and
institutions to prevent repeat of recent global economic
crisis which they said had adversely impacted the developing
nations.
The Group, at the conclusion of 14th summit discussion
here, noted with deep concern that the crisis, which had its
origins in major financial centres in the developed world, led
to food insecurity, volatile commodity prices, drying up of
private capital flows and unemployment besides loss of
confidence in the international financial system.
The call for monitoring is reminiscent to the resolve of
G-20 grouping last year to keep a watch and reform
multilateral funding agencies.
The global financial crisis, triggered by fall of
America's investment banker Lehman Brothers in September 2008,
impacted economies of the world. The crisis saw India's
economic growth rate slipping to 6.7 per cent in 2008-09 from
over nine per cent in the preceding three years.
The financial crisis, the Joint Communique of the G-15,
said: "Highlighted long-standing systemic fragilities and
imbalances (of the existing global financial system)."
The grouping, which comprises nations from Asia, Africa
and Latin America, called for expanding "the scope of
financial regulation and supervision, making it more effective
and transparent, with respect to all major financial centres,
institutions and actors, including an unbiased and effective
IMF surveillance of financial centres, international capital
flows and financial markets."
Seeking greater voice and participation for developing
nations in multilateral organisations, the Communique called
for completion of IMF quota review by November 2010.
"The Bretton Woods Institutions (like World Bank and IMF
set up to fund reconstruction of world after World War-II)
should not be seen as the unique source of financing for the
developing world," it said calling for alternative financial
institutions.
Only last month, the World Bank member nations approved
greater voting rights for developing countries including India
and China. This change would also enable India to seek
additional assistance from this multilateral funding body.
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