•Opening remarks on India’s position at the Summit on Financial Markets and the World Economy.

FM: In his statement, the Prime Minister has highlighted three points he will make at the summit. The need for greater inclusivity, ensuring that the development prospects of developing countries do not suffer and the need to avoid protectionist tendencies. I have just returned from the G-20 Finance Minister’s meeting and the G20 Finance Ministers have put out a communiqué.

The key point is, we must agree to a new order of global oversight. And this can come only by, as the Prime Minister said, greater inclusivity in the international financial system. In many ways, the IMF and the G-7 are too narrow and too small. A more inclusive system can provide better surveillance and serve as an early-warning mechanism.

The second is that while the world grapples with the crisis, the countries most hit by it find their growth prospects hampered. We must not forget that there are only a handful of economies that are driving the world economic growth. Among them are China and India. Resources must be made available to developing countries, including India, so that they can continue to grow and try to have economic development.

Third, the crisis should not be an excuse to go into a protectionist cocoon. That would be the worst way to solve the crisis. We must now try to encourage free flow of goods and services and must continue to enhance the flow of capital. Except for increasing free flow of goods, services and capital, there is no way in which the world will recover and get back to the growth path. All this requires deep thought... and quick agreement among the leaders.

... contd.