BERLIN CONFERENCE; PRELUDE TO G-20

MARKEL AND BROWN; WHO WILL BELL THE CAT?

Leaders of major european countries have assembled in Berlin in a prelude to G-20 summit (India is also a member of G-20) which is scheduled to be held on 2nd April this year in London. This meeting is being attached immense singnificance because leaders of all major european economic powers have accepted officially that recession has arrived into their countries. Although no consensus is likely to be arrived at here also, but all leaders have unanimously argreed to the fact that this is a " global crisis and therefore it needs to be tackled globally", an acceptance which had been conspicously absent in all previous deliberations on economic matters. The change in attitude is significane and it seems that they are making themselves prepared to give a big say to other countries of third world, vis-a-vis new 'global financial order'. Markel went upto saying that this is the ' extraordinary international crisis' that means they want it to be solved with global participation.

Underpinning the significance of forthcoming London Summit, President Sarkozy said that ' summit would bear historic responsibility to reform global system. Apprehending the advent of trend of protectionism, Gordon Brown said that it would undo all the progresses which we have made over these years in terms of prosperity, liberty and democracy. Brown further said that an economy should be created which is based on ' soundest principles' and world needed a ' global new deal'.

Although all participating leaders have divergent views on majority of issues, but all of them reiterated the need of conferrement of major role on global financial institutions like IMF and world Bank.

The leaders also expressed their anguish and concerns on the system of giving hefty bonuses to the corporate managers at the cost of tax payers money. It should be born in minds that Obama have strongly warned against such practises. In India our PM had raised voice of concerns months ahead of this crisis when he had requested the corporate houses to trim the salaries of CEOs because it not only widens disparity but also instills frustrations in different classes of society. Unfortunately this appeal was not taken by Industrial and corporate houses in its spirit. Many laughed saying 'pay gram and you employ monkeys' 

This prelude conference at Berlin gives some idea about the agenda of the London summit on which India and other developing nations must do home works.

What actually India and other such countries want from the London summit? BRIC ( Brazil, Russia,India and China) and IBRA and other such blocs must prepare their agenda well before this summit so that they can put their case in a more cohesive and coordinated way. India has not yet started Institutionalised official deliberation on it as to what we are looking for in the forthcoming ssummit. It is the high time that we must stake claim a big role in the proposed global financial order otherwise there is no use crying over spilt milk.