"India on Friday outlined the steps it wants taken to lift the global economy out of the current financial morass. ... PM Manmohan Singh said the first step would be to “de-clog” the global credit markets which had choked up as a result of the crisis.
Second, multilateral financial institutions (MFI) like World Bank and IMF should step in with larger resources to invest in large infrastructure projects in developing countries, which can act as a stabilizer in the global economy.
The primary need, Singh said, was coordinated action to restore confidence in the credit market.
It is now clear that India would certainly be present at the November 15 G-20 summit in Washington. ... US President George Bush has called up Singh to personally ask him to be present. In what was clearly a global reversal of roles, European countries repeatedly asked Asia to lead the way out of the crisis. N Ravi, secretary (east) in the MEA, told reporters that all"
Either … or …
India seems to completely lack direction on how to move independently in times like these. After, all why should India even look at IMF and World Bank - which are fig leaf organizations of the West, as transfer mechanisms of wealth from the Third World to the rich.
Or India is working on a different plan, of which we know nothing. After all, India does believe in moving steadily (even, if slowly).
Russia and China
US and EU have their own reserve currencies - leaving Russia and China out in the open. Russia and China (as full P5 powers) will want a ‘lion’s share’ of influence in any new architecture. Which any Third World grouping will not give.
Stalemate.
Japan + ASEAN
China-leaning Lee Kuan Yew with an Islamic Malaysia may not be very hot about ‘giving so much influence’ to a ‘new member’ like India for an ASEAN initiative.
Any action which hurts the US, their largest market and patron, will be something that will make Japan and ASEAN hesitate. The very economic model of ASEAN + Japan is undervalued currency + exports to the USA. Hence, they will be wary of any initiative that affects the USA - and the West.
Status quo …
Interestingly …
Manmohan Singh is the only educationally qualified leader in the leadership line up of major world economies.
Announcement
The 2ndlook model for a Third currency Bloc is ready. Join in to review, participate, critique and develop the First Cut. While the need for a new global reserve currency has been evident, there is very little in the public sphere. The speed of events has clearly caught the BRICS and Third World napping - and unprepared. But, not 2ndlook - who, from the very beginning, proposed that the world should stop clinging to the Dollar-Euro skirts.
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