Friday, April 3

India in G20

Hu Jintao wanted a world currency. Sarkozy wanted more regulation and an international regulator. Merkel opposed additional fiscal stimulus. Medvedev was re-seting Russia-US relations.

And Manmohan Singh wanted Obama's autograph!!

Listening to Manmohan Singh's press conference later it seemed we were glad that we were invited and that in itself was an achievement.

I am sure we could have done better. Protectionism and IMF reform were items we could have championed publicly. Atleast got the PR right. But I guess with elections back home, really, who cares about a "fancy" global financial meltdown. We truly have bigger issues to worry about.


ചില നേരത്ത്.. said...

I saw your blog post while searching India in G20 and surprised by your vague opinion.With a world currency, China only meant SDR (Special Drawing Rights), you might have thought a Euro or like (please read the link) . I am not sure on your view though. Your comment on Our PM doesnot really satisfy your reader even if you are equipped with an MBA.

Ibru (A reader)

Jacob Varghese said...

Jacob: I did read the link you posted and to quote from it in the very first paragraph : "..and China fervently hopes — that SDRs will in due course replace the dollar as the main world reserve currency."

Find below the link to the original article from The People's Bank of China where Mr. Zhou Xiaochuan is talking about a "super-sovereign reserve currency" by giving SDRs a "greater role" which it does not have today. SDRs currently are mainly used in IMF's accounting for its transactions with member nations. Making SDRs into THE international reserve currency has huge implications as pointed out in the article you sent.