09 April 2009

India’s selflessness

At the G20 Summit’s trillion dollar global recovery plan announced in London last week, although Eastern Europe had been singled out as the region in dire need of financial aid and assistance, no help has reached it yet. Mexico alone seems to have secured a $47 billion credit line by the IMF.

Perhaps it’s because the IMF has already pledged $60 billion in loans to Hungary, Latvia, Romania, Serbia and Ukraine ahead of (and in spite of) the G20 Summit, and are a little skeptical of making further investments in the region without due diligence. However, the IMF has other requests to worry about. Turkey, Brazil, Indonesia, South Africa and South Korea have already queued up behind Mexico.

But, what about India? Wouldn’t India benefit from a little IMF funding?

According to various media sources, Prime Minister Manmohan Singh has been quoted as: “India does not need IMF funding but we have been in favour of expanding IMF resources as this will help developing countries that need assistance. It will restore confidence about emerging markets.”

Adding that, “We have agreed in favour of greater resources for the world’s developing countries, because developing countries who are not responsible for this crisis are yet major victims of the crisis.”

What explains India’s selflessness is difficult to tell. One hopes India will prosper on her own inner strength.

[Citation: India for 3-Fold Increase in IMF Equity, Outlook magazine, 7 April 2009; India helps secure G20 deal for developing countries, Thaindian News, 3 April 2009]

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