Policy coordination is critical, says FM at Paris
Policy coordination is critical for sustaining the economic recovery, said India’s finance minister speaking at the BRICS’ ministers meet in Paris. "The crisis showed us the fruit of working together for policy cooperation. This is just as true for the recovery. The global recovery is still fragile and uneven. We are faced with significant downside risks arising from tensions in the euro area periphery spreading to other regions, high commodity prices and inflationary conditions in our countries," he said.
The FM also welcomed SouthAfrica to the platform. "The BRIC platform has demonstrated to the world that although the BRICS are located in different continents, and have vastly different economic structures, they can come together and cooperate to enhance global economic outcomes. And now with South Africa joining us, we are further enriched further and enabled to take a more cohesive policy stance in various forums," he added.
The FM also said that the international economic policy coordination though the G20 framework for strong, sustainable and balanced growth holds the key to sustaining the global recovery. The Leader’s Declaration at Seoul clearly focused on ‘promoting external sustainability’ within the spirit of multilateral cooperation. Our Leaders were careful enough to recognise that such an exercise should focus on persistent and excessive imbalances. As co-chair, we are concerned that the task of preparing guidelines and the ensuing MAP process should not be seen as one that would be used to shape country specific policies in a manner that one size fits all.
"The objective is clearly of framing a set of ‘indicative’ guidelines that all G 20 countries will agree upon in the interest of reducing excessive external imbalances that stand in the way of raising global growth on a sustainable basis," he added.