G20 looks to India, China for more funding to IMF

Cannes : With the International Monetary Fund (IMF) seen as an key forum in resolving the Eurozone crisis, G20 leaders including Prime Minister Manmohan Singh, were looking at more funding to the institution and calm the global markets.

Both at the meeting with the leaderships of Brazil, Russia, China and South Africa – together called the BRICS countries along with India, and at G20, Manmohan Singh has said the IMF was the right forum both for surveillance and funding.

This view was also shared by the leaders when they gathered Friday at the same venue where the famous Cannes film festival is held at Palais des Festivals for the second day of the G20 Summit at the working session on financial regulation.

“We strongly support the IMF playing its part in restoring stability in Europe,” the prime minister had said in his remarks, while also underscoring that developing countries should not be starved of funds from the institution.

“The IMF must keep the situation under close watch as part of regional surveillance. It should also be willing to help in an appropriate manner if asked to do so,” the prime minister said.

“Multilateral Development Banks play a key role in mobilizing and deploying global savings. The G-20 should therefore raise its level of ambition for these institutions so that they can play the kind of transformational role they played in the post war period.”

Speaking to journalists here, Planning Commission Deputy Chairman Montek Singh Ahluwalia, who is the prime minister’s sherpa or the chief interlocutor, also said $250 billion now at the disposal of IMF may not be adequate if used for Eurozone crisis.

In fact, in a dramatic turn of events indicating the shift in the global power, the traditional developed economies in Europe were hoping that emerging economies like India and China would help with funds, though the US position was different.

“There is a broad view among G20 leaders that there does need to be additional IMF resourcing,” Australian Prime Minister Julia Gillard said late Thursday. “Leaders recognize that it is an appropriate move.”

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