Washington, October 12
Welcoming the coordinated approach by the developed nations to tackle financial crisis, the Reserve Bank of India today said that emerging and developing economies like India must be consulted while taking decisions impacting them.
Speaking at a meeting of the International Monetary Fund and Financial Committee here, RBI Governor D. Subbarao said though coordination among developed countries is welcome, the emerging and developing economies should be "explicitly factored in".
The emerging economies may not have direct or significant exposure to stressed financial instruments, but they are experiencing indirect impact of the financial crisis, including dip in capital inflows.
He also cautioned that the indirect impact of the global financial turmoil was not insignificant or trivial and this may intensify in the months ahead.
Yesterday, finance minister P. Chidambaram in a formal statement to the IMF Committee had said that the International Monetary Fund should take the lead in resolving the financial meltdown to steer off possible recession.
He had said any delay in addressing liquidity concerns could cause solvency problems.
Subbarao had tabled the speech of Chidambaram, who had to cancel his visit to assuage fears at home about the global financial storm hitting the Indian shores.
Chidambaram said that although the IMF role in the crisis was so far perceived to be "peripheral," the IMF should gear up to meet the borrowing needs of member- countries engulfed by the crisis. — PTI
