India advises the world

It's a strange reversal of roles for India at the ongoing G20 summit in London. From being told what to do, now it's India that advises the world, especially on the current global financial crisis.

Prime Minister Dr Manmohan Singh has sent out four hard hitting messages to world leaders on ways to tackle the global economic downturn. The PM said that the International Monetary Fund (IMF) and the Asian development Bank (ADB) resources need to be enhanced immediately by at least 200 per cent to enable them to substantially expand their operations. He also said that the sale of gold and issue of SDRs could also be considered. He further said that the World Bank is conservatively leverged and has access to large amounts of callable capital for adopting a counter-cyclical stance.

Second message from India to G20 is to take the toxic assets out of the financial system. The Prime Minister, first, has urged the biggest economies to loosen their purse strings. The PM said, "Better initiatives are required to be taken by the industrialised countries to take toxic assets out of the financial system as these have frozen credit markets."

The PM has underlined the need to restore access of funds to emerging economies like India. Speaking in this connection, the PM said, "Emerging economies have prospects and macroeconomic stability. we need to restore acces to funds for emerging economies like India."

Fourth hard hitting message is to be wary of protectionist policies. Speaking on this, he said, "Pressure by protectionist forces is clearly building up and new forms of protectionsim have emerged.

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