India was in an ebullient mood which was clearly visible when Mr. Manmohan Singh offered India’s help in solving the Eurozone crisis. It sought to push for increase in banking transparency and exchange of information to combat tax fraud and other illicit flow of capital across borders (The sarcasm is that India couldn’t trace money inside the economy). Cannes declaration urged all jurisdictions to adhere to the international standards in AML/CFT areas. It also asked Global forum (105 Signatories) to complete the first round of reviews and advance the next round. India could not initiate a discussion with other G20 members with regards to Financial Transaction Tax (FTT) for the development of the economy. India which was facing double digit food cost inflation this month can take solace from the fact that G20 has taken up the issue of price volatility in foods as a serious issue. However, G20 had not initiated any discussion on export restrictions on food commodities . The declaration also had no mention of regulatory regime global commodity prices. As, India was on the verge of becoming the fourth strongest economy in the G20 group it felt the need for greater representation of itself in the IMF board. To this extent it was disappointed when G20 declaration did not offer any firm commitments. While India has managed to play a key role in shaping the G20 agenda, the Cannes summit is bogged down by the Euro zone crisis. But going forward the Indian influence on G20 will depend on how India addresses its’ own problems. In such a scenario will India take up its issues in other world forums and are the countries all ears to what India is pitching for is still a question mark to Manmohan and Co.
Post by: Tandlum Suhash
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