There is clear imprint of Prime Minister Dr Manmohan Singh on the final economic strategy approved by G-20 leaders of industrialised and emerging countries. G-20 that replaced G-8 as premier decision-making body endorsed differential economic strategy proposed by Dr Singh setting at rest the squabble as to continue or withdraw governments’ additional spending to consolidate fragile growth.
The 25-page summit declaration adopted at Toronto on Sunday has economic prescription for different countries outlined by the Prime Minister in his G-20. Advanced countries with huge deficits will withdraw stimulus spending and pursue austerity. Others, including US and developing economies will continue with spending to support fragile growth.
His experience as an economist and long stint as teacher at Delhi School of Economics (DSE) seems to have come handy for G-20 leaders including US President Mr Barack Obama in clinching a largely agreeable economic package for next 3-5 years. After India-US bilateral summit, President Obama did not hold back praise for Dr Manmohan Singh. In a brief interaction with newsmen, the US President remarked, “When Indian Prime Minister speaks (on economic policy) the world listens”.
This is not first time President Obama lauded economic genius of Dr Singh. At September 2009 G-20 Pittsburgh summit held in the midst of heightened economic crisis, the US President regarded Dr Singh for being the wisest at high table of world leaders and asked for prognosis.
It is not just President Obama who largely looked to the Prime Minister for advice on policy prescription. Same was the sentiment publicly aired by Canadian Prime Minister Stephen Harper who chaired G-20 summit at Toronto.
At the joint news conference after two countries inked several deals, Mr Harper said, “we at G-20 do lean on Prime Minister Manmohan Singh’s wisdom and experience for guidance.”
On Saturday, when French President Nicolas Sarkozy met Dr Singh separately, he sought the latter’s advise on the vision document for G-20 for next five years. France would takeover G-20 chairmanship next year.
As the mentor-in-making for G-20 that accounts for over 85 per cent global economy, Dr Singh has used his pivotal position to push for developing countries’ agenda. For instance, he has been singularly credited for a tilt in the final summit communiqué that favoured continued spend by governments to consolidate growth and revive demand for goods and services.
In fact, briefing newsmen on Sunday, finance secretary Ashok Chawla credited Dr Singh for pushing the growth agenda. Similarly, Dr Singh used his cloud to get better deal, i.e. an additional 5 per cent voice quota at IMF after having secured larger say in World Bank.
Dr Singh has pushed developed countries to agree for a three-year freeze on any additional trade barriers and work towards early Doha trade negotiations.