G20 to forge plan to rescue global economy

Written by Huma Siddiqui | New Delhi | Updated: Aug 29 2013, 07:52am hrs
With the global economy in the doldrums, an action plan to boost jobs and growth, while re-balancing global demand and debt, will top the agenda of the leaders of the worlds most powerful economies at the forthcoming G20 summit. The meet will be hosted by Russian President Vladmir Putin in St Petersburg from September 5-6.

Ahead of Prime Minister Manmohan Singhs visit, senior officers in the ministry of external affairs (MEA) told FE, For India, the topmost priority will be to focus on issues of growth and financing investment to protect its economy from the spillover effects of quantitative easing by the United States.

Also, another priority for New Delhi at the summit will be to keep the groupings focus on long-term financing for investment in infrastructure and SMEs. The official, added: In this context, the leaders of the G20 countries are expected to focus on closer coordination between multilateral development banks to mobilise private capital to address the infrastructure needs in public-private partnerships.

The two-day summit of the grouping, which accounts for 90% of the global economy and two-third of the global population, would also seek to bridge the hope deficit in the world economic system and map the way forward for intensified macro-economic coordination for sustainable economic recovery.

This time, the spotlight will be on developing effective coordination mechanisms and policy innovations to spur sturdy, balanced, sustainable and inclusive growth. The leaders will be coming out with a more sharply focused St Petersburg Plan of Action to stimulate and sustain the global economic recovery.

Focusing on job-creating and growth will be another focus area at the St Petersburg summit as the unemployment levels in several countries, including the US, have become excessively high and untenable, breeding large-scale discontent. In terms of likely tangible outcomes, the G20 economies are expected to come together on the interlinked issues of tax evasion, money laundering and combating corruption.

The summit could see a sort of breakthrough on coordinated measures to combat tax evasion and a collective endorsement of the OECDs proposal for a global model for multilateral and automatic exchange of information relating to tax avoidance.