India & G20 Nov 15 meeting: A no-win situation for Developing World

Sunday, October 26, 2008

In an earlier post, More losses from Banks...Rewrite Bretton Woods I said:

I think someone has to be robbed in order for the 'developed world' to maintain its standard of living. A new 'Bretton Woods' sounds like a good place to start.

Now at the ASEM meeting in Beijing, our Prime Minister has chimed in:

The Hindu
But so far, said Dr. Singh, he has not yet decided to attend the G20 summit on the crisis that U.S. President George W. Bush has called for November 15.

The officials said Dr. Singh’s main concern is that Asia, Europe and North America appear to have a different understanding about the challenges and opportunities posed by the ongoing crisis and that unless the proposed summit is extremely well prepared it could end up sending confused or even wrong signals to global markets.

The French and Europeans want new international regulatory mechanisms to deal with hedge funds and other volatile and speculative capital flows while India, China and the rest of Asia were emphasising the need for increased investment in regional infrastructure as a stabilisation mechanism as well as greater participation in the international financial institutions. As for the U.S., its priority was for a quick fix that would unlock global credit markets while not disrupting the dominant role of the U.S. economy or the dollar in the international system.

In Naked Capitalism, Yves Smith says: " This is one reason I am perplexed at Bush having a financial summit that includes China and India next month".

I agree; there is no point going to a summit where you have no real might as well wait and read the final text at home. I hope the Prime Minister sends an envoy for protocol and nothing more.

Since you are going to be robbed, there is no point showing up at the scene as ordered...

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