Comments
Welcoming the quota reforms by the International Monetary Fund, Prime Minister Narendra Modi on Saturday pushed for further quota reforms by the multilateral agency to reflect the changes in the global economy ensure that poor nations respect the legitimacy of such institutions.
“Change in quotas is not an issue of increasing the ‘power’ of certain countries. It is an issue of fairness and legitimacy. The belief that quotas can be changed, is essential for the fairness of the system. For poor nations to respect the legitimacy of such institutions, they must be able to aspire and to hope. I am, therefore, very happy that the IMF has decided to finalise the next round of quota changes by October 2017,” he said at the Advancing Asia conference
His comments come even as the government has sought additional spending of ₹69,575 crore for increasing India's quota and voting rights in the multilateral agency and making its one amongst its 10 largest members.
Ray of hope
Lauding the expertise of the IMF, the Prime Minister said that new multilateral agencies such as the Asian Infrastructure Investment Bank and the New Development Bank will play an important role in the development of Asia.
Stressing that Asia is a ray of hope for the global economic recovery, he further said that India’s economic growth is very distinct in Asia and has dispelled the myth that rapid economic growth and democracy can not go together.
“We have never tried to gain trade at the expense of our partners…we have never undervalued our exchange rate,” he said, in a veiled reference to recent measures taken by China to improve its exports and slowing economic growth.
The Prime Minister also stressed on the need to pursue policies that provide a stable macroeconomy, enhance growth and further inclusion and said that India can contribute to global demand and growth.
He listed out various measures taken by the government to enhance growth, increase investments and governance. “Corruption and interference in the decisions of banks and regulators are now behind us,” he said while promising to double farmers’ incomes.
MoU signed
IMF and India also set up a regional training and technical assistance centre in Delhi. The South Asia Regional Training and Technical Assistance Center (SARTTAC) will provide planning, coordinating, and implementing the IMF’s capacity development activities in six countries in the region including in India, Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka.
Finance Minister Arun Jaitley and Lagarde also signed a memorandum of understanding to this effect.
Asia's partner
Addressing the conference, IMF Managing Director, Christine Lagarde noted that Asia’s rapid integration into the world economy has been one of the most striking global developments of the last generation, which means that Asia now affects the world more than ever before.
She stressed that to unlock Asia’s economic potential policies must be taken to broaden access to services like health and finance, leverage the impact of fiscal policy is essential, empower women, more investment in infrastructure and greater trade integration.
“I am pleased to say that the IMF is Asia’s partner in this endeavour—and the region’s increasingly important role is increasingly reflected in our relationship,” she said referring to the recent quota reforms.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.