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Protectionism destructs global trade: PM
By siliconindia
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Friday, 12 November 2010, 18:39 IST |
1 Comments
Seoul: Addressing the plenary session of the G-20 summit, Prime Minister Manmohan Singh said that protectionism is hampering the global trade. He also endorsed the proposal to rebalance the global economy between countries with surplus and deficits on the current account of the balance of payments. He also brought out the need to protect the global growth process so as to ensure countries such as India stay on course to achieve their development targets.
Earlier high growth trajectory is imperative if the government is to meet its development objectives, particularly in pulling nearly 400 million out of the so called below the poverty line (BPL). We must persevere to develop a workable G-20 mechanism for international coordination.
Even the IMF survey had found earlier that the restrictions on trade imposed by countries trying to protect their economies facing tough times could make it harder for them to recover from the global economic crisis.
According to PM, not only should competitive devaluation be avoided at 'all costs', advanced deficit countries need to pursue fiscal consolidation, structural reforms should be undertaken by all countries to improve governance and competitiveness and finally avoid monetary policy that could trigger destabilising capital flows.