India is all set to push for developing a mechanism for conducting a peer review of economic and financial systems among G20 partners in the coming finance ministers’ and central bank governors’ meet in the first week of November. After having got the forum to consider linking multilateral aid to the proportion of gross domestic product of countries, India now plans to focus on issues related to flagging early signs of trouble in economies of the current members.

“Despite the muscle of resources and experience that the IMF and World Bank have, they were not able to detect early signs of the global financial crisis. It is in this context that we want nations to deliberate on a mechanism for peer review of economies so that the world is better braced for any such likelihood,” a senior government official told The Indian Express.

“We want the peer review to have a mechanism and set process,” the official said. However, it is not clear whether India will push for a binding mechanism or not.

The peer review is a concept involving a bilateral process for reviewing economies so as to prevent countries from becoming unstable pillars in the global economy. The major reason for this is that with India, China, Brazil and Russia emerging as giants in terms of consumption and manufacturing of goods and services, weaknesses in one can have a direct fallout in the case of the other.

Another major area where India wants a consensus to emerge is the timeline for different economies including itself to withdraw the fiscal stimulus measures given in the light of the global financial meltdown. “It is not just enough to decide when but also to consider the road map under which this could be taken up,” another government official said.