Equally important, preventing such crises requires modifying the mechanisms of financial regulation and supervision. However, since finance is international in nature, there is a need for coordination among the efforts of various countries in this regard.

The work of coordination has been placed on the G-20, a grouping of the 20 biggest economies.

India is a member and gains a ringside view of what is being done. Unlike more exclusive groups like the G-7 or the UN Security Council, in the G-20 India has ample opportunity to express any concerns it may have. This seat on the table is the payoff which India has obtained by virtue of having high economic growth in the last decade, and this will (in turn) help enhance Indian economic growth in the decades to come.

The next G-20 meeting is due to take place in London on April 2. There are four critical areas of debate which will take place.

First, some countries, notably in the European continent, have spent little money on a fiscal stimulus, even though they have the fiscal capacity to do more. They will be urged to do their fair share.

The G-20 countries are likely to draft declarations on avoiding all forms of protectionism and exchange rate manipulation. However, the practical value of such statements is limited. Many countries are known to announce new protectionist measures right after signing such declarations.

Third, the meeting will discuss IMF reforms. This involves the question of how to augment the resources of the IMF, and urge continental Europe to step aside in terms of influence over the IMF in favour of emerging Asia.

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