Why G20 cannot rescue the global economy

We have to make everyone concentrate on G20 Summit in Brisbane. The G20's active measures to supposedly save all the global economy that is determined to recover from the crisis that hit in 2008. This kind of effort is not new at all. Instantly after the crisis such a summit took place in Washington and this annual feature was then hosted in London, Pittsburgh, Toronto, Seoul, Cannes in France, Los Cabos in Mexico and St Petersburg. This year the turn is for Australia to host the two-day meeting in Brisbane.

Indeed the schedule annual feature has produced to be a mere talk shop. No significant attempt has been made at the multilateral height to save the global economy. Whatever steps are being taken is at state level for making more demand to sustain the growth pace of their economy. Narendra Modi is at the G20 Summit along with designated Sherpa, the newly appointed Railway Minister Suresh Prabhu. It is anticipated that India will build positive interventions, mainly on the need for economics infrastructure projects as Official Development Assistance (ODA) funds are becoming dry. India needs an investment of over $ one trillion for numerous infrastructure projects. The Modi Government is bullish in supporting the flow of foreign direct investment (FDIs).

The G20 leaders are projected to declare a global infrastructure hub in detail at the Brisbane summit which will boost and enlarge the flow in particular of private investment into global infrastructure, a demand that is estimated to be around $80 trillion over the next decade. The developing countries had claimed changes in the global financial architecture - Both the IMF and the World Bank that would provide them greater say and special drawing rights for infrastructure projects. But, there was some harmony on how recapitalisation must go on and how special drawing rights must be redrawn. But sadly action is lacking.

As per studies by the IMF, World, OECD and the UN the revival in the developed world is sluggish and almost inactive, whereas the recovery in the developing and growing economies is moderately better. If these reports are to be considered then the developing countries need more help in the form of investment to induce a spin in the global economy.

Undoubtedly, the developed countries have become more self-centered and protectionist. They are reluctant to give up to the just demands of the developing countries for a level-playing field in many-sided deal by phasing out their high level of subsidies, high tariff regime, protectionist non-tariff barriers and politically provoked sanitary and phyto-sanitary (SPS) measures to refuse bring in of food items citing health and sterile reasons, surfeit pesticide residue, heavy metals etc. Though, Australia is looking for a successful conclusion in the form of a "Brisbane Action Plan".