New Delhi: “President-elect Barack Obama may agree to a proposal of global oversight of the financial system as he has a larger world-view than US President George Bush,” Finance Minister P. Chidambaram said on Tuesday.
“Given by what I have read about President-elect Obama, I see no reason why he should be averse to the idea. I think he has a larger view of the world than President Bush. Therefore, I think he should agree to this global oversight,” Chidambaram said at India Economic Summit, organised by the World Economic Forum and CII.
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“It would have been reassuring if the incoming administration quickly stated that it is on board and is closely engaged with the outgoing administration,” he said.
Chidambaram said that his concern is that the G-20 in Washington could not agree on some kind of global oversight of the implementation of the action plan.
“I would have liked global oversight, not a global regulator; just a oversight mechanism to ensure that the national regulator and national authorities are implementing the action plan between now and 31 March,” he said.
Chidambaram also said that G-20 is a much better forum than the G-7 and is a better representative body of the world’s GDP.
“I don’t know whether the G-20 will replace the G-7, but I think the G-20 will become the most important economic forum like BRIC (Brazil, Russia, India and China) to address the economic issues,” he said.
Chidambaram said the G-20 has been meeting regularly for the last 10 years, but the G-7 has dominated the international scene.
“I think the G-7 has recognised belatedly that it alone does not have solutions to problems and unless they engage with the emerging economies and the growth sectors in the world, there is no solution to the world problem,” he said.
“That’s my take-away from Washington. The G-20 has come to stay as the single-most important forum to address the financial and economic issues of the world. I am generally happy with the G-20 declaration. And I am happy with the action plan,” he added.