ID :
149626
Fri, 11/12/2010 - 08:41
Auther :
Shortlink :
https://oananews.org//node/149626
The shortlink copeid
LD G20 2
The currency war and the US proposal for a 4 per cent cut
in the current account deficit, or surplus, have threatened to
overshadow deliberations at the summit, which begins Friday
amid tight security after several thousand protesters
demonstrated in the host city, Seoul, and a woman tried to set
herself on fire outside the venue.
China, whose yuan is widely believed to be undervalued,
and Germany, whose economy is doing well, are not too happy
with the US attempts to put a cap on the current account
deficit or surplus.
Indian sources, however, said the final communique would
take into consideration the concern expressed by the majority
of the countries that there should be balance in trade and
protectionism should not not be resorted to.
US President Barack Obama, who last week faced severe
electoral reverses, has sought to shore up the domestic
economy, saying growth in America would spell good for other
economies too, as it can act as a driver.
However, others like Germany and China fear such a move
would bring back the imbalances that led to a global economic
crisis in 2008.
The joint statement, Indian sources said, would also try
to focus on long-term issues like development -- which the
host country, South Korea, wants to focus on as mandated at an
earlier summit in Toronto -- and to bring balance back to the
global economy.
India would favour advanced countries with deficits
following policies of fiscal consolidation against the
backdrop of their individual problems to ensure debt
sustainability over the medium term.
A major beneficial fallout of the Summit for India would
be the approval of reforms in the IMF, which has decided on
shifting the voting share in favour of countries like India
and China. The move would catapult New Delhi to 8th position
in the IMF in terms of voting power, from 22nd position at
present.
The Seoul Declaration will talk about reforms of the
Basel III norms that would put checks and balances in place at
financial institutions across the world to prevent a collapse
similar to what happened in 2008.
The final communique would also take a common stand on a
global framework for strong, sustainable and balanced growth
and voice strong views against protectionism in any area,
including trade and investment. MORE PTI
in the current account deficit, or surplus, have threatened to
overshadow deliberations at the summit, which begins Friday
amid tight security after several thousand protesters
demonstrated in the host city, Seoul, and a woman tried to set
herself on fire outside the venue.
China, whose yuan is widely believed to be undervalued,
and Germany, whose economy is doing well, are not too happy
with the US attempts to put a cap on the current account
deficit or surplus.
Indian sources, however, said the final communique would
take into consideration the concern expressed by the majority
of the countries that there should be balance in trade and
protectionism should not not be resorted to.
US President Barack Obama, who last week faced severe
electoral reverses, has sought to shore up the domestic
economy, saying growth in America would spell good for other
economies too, as it can act as a driver.
However, others like Germany and China fear such a move
would bring back the imbalances that led to a global economic
crisis in 2008.
The joint statement, Indian sources said, would also try
to focus on long-term issues like development -- which the
host country, South Korea, wants to focus on as mandated at an
earlier summit in Toronto -- and to bring balance back to the
global economy.
India would favour advanced countries with deficits
following policies of fiscal consolidation against the
backdrop of their individual problems to ensure debt
sustainability over the medium term.
A major beneficial fallout of the Summit for India would
be the approval of reforms in the IMF, which has decided on
shifting the voting share in favour of countries like India
and China. The move would catapult New Delhi to 8th position
in the IMF in terms of voting power, from 22nd position at
present.
The Seoul Declaration will talk about reforms of the
Basel III norms that would put checks and balances in place at
financial institutions across the world to prevent a collapse
similar to what happened in 2008.
The final communique would also take a common stand on a
global framework for strong, sustainable and balanced growth
and voice strong views against protectionism in any area,
including trade and investment. MORE PTI
