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Resist protectionism, keep markets open: G20

There is need of 'stronger actions' to promote growth and stability

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Press Trust of India Los Cabos
Last Updated : Jan 24 2013 | 1:49 AM IST

In order to boost global demand and achieve sustainable growth, the G20 leaders have asked the member nations and other countries to resist protectionism and keep markets open.

"Resisting protectionism and keeping markets open," said the Los Cabos Growth and Jobs Action Plan adopted at the 2-day summit here, which among others was attended by Prime Minister Manmohan Singh.

As the global economic risks and uncertainties have increased substantially, it said, "our collective focus now is to strengthen demand, growth, confidence and financial...We have agreed today on a globally coordinated economic plan to achieve those goals through our framework for strong, sustainable and balanced growth."

Besides underlining the need for decisively dealing with the sovereign debt problem in the Euro zone countries, the Action Plan calls for "boosting demand and economic growth, and reducing persistently high and rising unemployment in many advanced economies, especially among young people".

It also underlined the need for dealing effectively with spike in oil prices in wake of geopolitical risks in an environment of limited spare capacity and modest inventories.

The priority, it added should be to ensure that emerging markets maintain a strong and sustainable growth path that contributes to the global recovery and quality job creation.

Calling for "stronger actions" to promote growth and stability, the Action Plan said, "we need to intensify our efforts to reduce both internal and external imbalances" and address problems pertaining to high fiscal deficits.

Efforts, it added, should be made to minimise risks and ensure proper functioning of our financial systems, supported by fiscal and monetary policy actions.

"We renew our commitment to deny safe haven to the proceeds of corruption and to the recovery and restitution of stolen assets," the declaration said.

Corruption, it added, "impedes economic growth, threatens the integrity of markets, undermines fair competition, distorts resource allocation, destroys public trust and undermines the rule of law. We call on all relevant stakeholders to play an active role in fighting corruption."

Referring to trade issues, the G20 leaders expressed "deep concern" about rising instances of protectionism and expressed their commitment for "open trade and investment, expanding markets and resisting protectionism in all its forms, which are necessary conditions for sustained global economic recovery, jobs and development.

"We underline the importance of an open, predictable, rules-based, transparent multilateral trading system and are committed to ensure the centrality of the World Trade Organization (WTO). Recognizing the importance of investment for boosting economic growth, we commit to maintaining a supportive business environment for investors," the declaration said.

The declaration also expressed the commitment of the G-20 nations to reduce imbalances and strengthen public finances of deficit nations with sound and sustainable policies and moving toward greater exchange rate flexibility.

"Despite the challenges we all face domestically, we have agreed that multilateralism is of even greater importance in the current climate, and remains our best asset to resolve the global economy's difficulties," it added.

Recognizing the need to pursue growth-oriented policies that support demand and recovery, the declaration said that the United States will calibrate the pace of its fiscal consolidation by ensuring that its public finances are placed on a sustainable long-run path so that a sharp fiscal contraction in 2013 is avoided.

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First Published: Jun 20 2012 | 3:07 PM IST

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