In a big success for India, the G20 countries have agreed to give priority to investment in infrastructure in developing countries as a way to stimulate global growth, which has been stunted due to the faltering world economy and the Eurozone crisis. A 14-page declaration was released at the end of the seventh summit of the Group of 20 developed and developing countries in Los Cabos in Mexico. Stating that eradicating poverty and inclusive, sustainable and balanced growth remains the core objectives of the G 20 development goals, the declaration reaffirmed the commitment of the grouping to work with developing countries particular low income nations to fulfill internationally agreed millennium development goals.
The declaration said the G-20 will intensify its efforts to create a more conducive environment for development, including infrastructure development. It also committed to take all necessary actions to strengthen global growth, restore confidence besides enhance job creation. It said the Eurozone members of the grouping will act to safeguard the integrity and stability of the region, improve functioning of financial markets and break the feedback loop between the sovereigns and the banks.
Dwelling at length on the crisis in Europe, the declaration said the G 20 remains committed to reduce imbalances by strengthening deficit countries public finances with sound and sustainable policies that take into account the evolving economic conditions.
The Declaration said member countries are firmly committed to open trade, investment, expand markets and resist protectionism in all its forms to ensure sustained global economic recovery, jobs and development.
Prime Minister Dr. Manmohan Singh has said that the Los Cabos declaration only reflects India's initiative that investment on infrastructure in developing countries can play a major role in strengthening development and in stimulating global recovery. In a statement after the conclusion of the summit, Prime Minister said there was general agreement among leaders of G-20 nations that policy in all countries must shift to strengthenging growth and the most urgent problem that must be tackled is to reduce uncertainty in the Euro zone. He said the G20 countires have responded to the need to enhance the resources of IMF to enable it to play its role in the current situation. On India's contributing 10 billion dollars to the IMF, the Dr Singh said it reflects the recognition that as a responsible player in the global community India has to play its part.
Briefing newsmen in Los Cabos, the Secretary of the Department of Economic Affairs Mr R.Gopalan, said there would be follow up on this front after the summit.
