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India finds place in G-20

R C Murthy in Washington

The ongoing International Monetary Fund-World Bank annual meetings are important in several respects and shaping into a milestone in their history.

A broad-based Group of 20 has been formed to focus on translating the benefits of globalisation into higher incomes and enhanced opportunities for everyone.

India has been co-opted on the G-20, which comprises G7 members and 11 major emerging economies -- Argentina, Australia, Brazil, China, Mexico, Russia, Saudi Arabia, South Africa, Korea and Turkey.

The Enhanced Structural Adjustment Facility of the IMF, set up to mitigate interest burden on poor countries is to be replaced by a new Poverty Reduction and Growth Facility, which will have even more broader objectives. The ESAF's mandate is running out this year.

A new initiative to give an enlarged and deeper debt relief to Highly Indebted Poor Countries, called HIPC-II, is to be launched. Even some aid-weary advanced countries are eager to contribute more cash and push it through, partly through sale of IMF gold.

G-7 countries have directed the IMF not to give any more cash to Russia unless that country's central bank is audited by independent auditors.

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