FM sees new world order with greater collaboration

Finance Minister Pranab Mukherjee today said the developed and developing countries should adopt a collaborative approach in taking corrective measures as the global economy emerges from the financial crisis.

“Indeed, we are all witness to an emerging new world order where there is a higher degree of interdependence among nations and, hopefully, there is also a more dynamic and equitable arrangement for global prosperity. One lesson we are to learn from this global crisis is that the remedy lies in collective and collaborative approach and not in unilateralism. In our anxiety to solve problems in one part of the world, we should not create greater problems in other parts and more so in the EMDCs (emerging markets developing countries),” he told the Indo-US CEOs Forum whiling pointing to the G-20’s efforts to find a common solution.

The statement came on the back of concerns that the quantitative easing in developed markets would result in more capital flows into emerging markets like India, and put pressure on policymakers trying to combat inflation and spur demand, in the domestic and export markets.

Mukherjee and US Treasury Secretary Timothy Geithner deliberated on a range of topics, including the Group of 20 agenda to rebalance global growth, the Treasury said in a statement.

The bilateral meeting, on the sidelines of US President Barack Obama's visit to Delhi, also covered technical cooperation on capital markets, the development of infrastructure finance and combating the financing of terrorism.