G-20 emphasises open trade policies

G-20 emphasises open trade policies

Ahluwalia at the G-20 meet in London. (AP)

London, March 15 (PTI): The finance ministers of the G-20 countries have supported India’s stand that protectionism should be avoided and agreed to end the convention by which the heads of the IMF and the World Bank are decided by Europe and the US, respectively.

At a summit that will set the tone for the April 2 gathering of global leaders, including Prime Minister Manmohan Singh, in London, ministers promised to “maintain open trade and investment”.

In a joint communique issued by the leaders in Horsham, west London, the finance ministers made it clear that raising the barriers to trade and free movement of workers would not resolve the crisis, promising to “fight all forms of protectionism”.

Planning Commission deputy chairman Montek Singh Ahluwalia is leading a 10-member Indian delegation at the two-day discussion.

The ministers have agreed to increase the International Monetary Fund’s $250-billion fund “very substantially”.

They have also reached a consensus to end the 50-year-old unwritten rule whereby the heads of the IMF and World Bank are decided by European and the US governments, respectively..

UK chancellor Alistair Darling welcomed the meet’s commitment to take “whatever action is necessary” to end the global recession.

He said there had been “a great deal of consensus” on key issues.

US treasury secretary Tim Geithnerp said the decisions taken yesterday would help to bring the recession to an end.

The finance ministers and central bankers set out a framework to handle bank rescue operations and future regulation.

Hedge funds will be more closely regulated, as will the sophisticated derivatives markets that sparked the global financial crisis.

The leaders also committed themselves to restoring bank lending, maintaining low interest rates and helping developing nations.