Economic crisis, reforms to dominate G8-G5 meet

I / Italy July 8, 2009, 14:55 IST

Steps for recovery of the global economy affected by the downturn and reforms of the international financial architecture will dominate discussions at the summit of G-8 leaders with those of the G-5 'outreach' countries, including Prime Minister Manmohan Singh, here tomorrow.

The leaders of major economies will also discuss crucial matters relating to international trade and issues of climate change ahead of the Copenhagen summit next year.

First the leaders of the G-5 outreach countries, including India, China, South Africa, Brazil and Mexico, which is heading the grouping now, will have a meeting.

There will be a joint statement at the end of the meeting and the G-5 leaders will carry forward the discussions with the G-8 leaders tomorrow.

G-8 comprises the US, Britain, Germany, Japan, France, Russia, Canada and Italy which is hosting the summit.

Only three months ago leaders of G-20 met in London and decided on measures including injection of trillions of dollars to pump prime the global economy.

Tomorrow's meeting will review the progress in this regard.

Indian officials point out that the meetings in Italy are not a negotiating forum either on WTO issues or those relating to climate change.

India would also put forth its views on restructuring international financial institutions and UN Security Council to democratise its functioning.

On Prime Minister's article that G-8 and G-5 were not a cohesive grouping and does not have UN sanction, officials said he would put forth views of major economies like restructuring international financial architecture and international organisations.

In an article in the compendium on contemporary global issues brought out for the summit, Singh has said India will strive for the reform of the UN to make it more democratic.

Singh called for significant reforms of international financial institutions to address global problems and asserted that India would seek its due place in such institutions.

Singh, who will be meeting US President Barack Obama and other world leaders here, said these institutions need to reform decision-making and ensure effective delivery to adequately reflect ground realities.

Before leaving for Italy, Singh said the economic slowdown needed to be dealt with by a concerted and well-coordinated global response addressing systemic failures and stimulating the real economy.

"The slowdown in the advanced economies has affected our exports, strengthened protectionist sentiments and impacted credit and capital flows. We would, therefore, like to see a concerted and well-coordinated global response to address systemic failures and to stimulate the real economy," he had said in his departure statement.