India today asked the global community to continue with the stimulus packages as economic recovery is likely to take long time. Finance Minister Pranab Mukherji also called for reforms in the IMF and the World Bank to give a bigger role to emerging economies in policy making. He said, economic recovery will be unsteady and long-drawn with growth in employment lagging behind. Mr. Mukherji was addressing the annual meeting of IMF-World Bank in the Turkish city of Istanbul this afternoon. He said, balancing the stimulus against the risks of inflation and threats to fiscal viability is a key short-term challenge. He said, the timing and sequencing of exit strategies assume importance. Pointing out that there is an unfinished agenda on repairing the financial system, he said the perimeter of regulation has to be expanded. The Finance Minister said the IMF and the World Bank cannot emerge from the crisis unchanged, adding the role of developing countries as drivers of future global economic growth needed to be recognized. Developing nations are demanding greater voting rights in both the IMF and World Bank. The G-20 nations last month agreed to shift five per cent voting share in the IMF, against the demand for seven per cent. Mr. Mukherji said, Parity in the vote shares of developed and developing countries would enhance the legitimacy of IMF. He said, other aspects of governance reforms should follow and flow from the quota rebalancing.
News On AIR | October 6, 2009 5:48 PM
India asks global community for continuance of stimulus packages