New Delhi: India has pitched for greater international policy co-ordination to ensure strong global growth and ring fence countries from risks to economicrecovery.
"Domestic policy efforts are country specific whereas to reach the target of 2 per cent global growth in the next five years greater synergy would be required in the international policy coordination," Finance Secretary Arvind Mayaram said at a recent G-20 Deputies Meeting in Washington.
Notwithstanding huge stimulus measures by various countries, global recovery has been uneven and there are concerns that winding down of US Federal Reserve's easy monetary policy could adversely impact emerging markets.
Mayaram garnered support from the emerging market economies like China and Indonesia while batting for the need to have greater international policy co-ordination to dealwith the negative spillovers, a Finance Ministry statement said.
"To increase global growth we not only have to look at the positive impact on country growth and spillovers but also reduce negative spillovers and risks to the world economy as a whole," Mayaram said while participating at the meeting held on October 10.
This meeting happened on the sidelines of the annual IMF/ World Bank meetings.
A case was also made for the International Organisations (IO's) to include negative spillovers in their models which currently focus only on the positive spillovers.
Mayaram said that currently the spillover analysis done by the IO's and the growth assessment are completely delinked.
A list of measures that could possibly have negative spillovers was also shared during the Session.
Mayaram reminded the participants that back in 2008, at the Washington Summit, it was agreed to that a broader policy response is needed, based on closer macroeconomic cooperation, to restore growth, avoid negative spillovers and support emerging market economies and developing countries.
Further, Mayaram brought to the forefront the situation of increasing asset prices in Emerging Markets despite lower inflation and growth which could trigger Asset price bubble which could pose potential risk to the global growth.
Firstpost is now on WhatsApp. For the latest analysis, commentary and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.
Updated Date: Oct 13, 2014 17:20:57 IST