As expected, the Islamic State attack that took 129 lives in Paris dominated the G20 talks in Antalya, Turkey, as countries agreed to exchange cross-border information and choke the terrorists’ funding channels. However, the economic agenda got its fair share of focus as Prime Minister Modi pitched for completion of the IMF quota reforms by the end of this year when the quotas come up for review, the need for greater global efforts to return the funds that are stashed in secret accounts abroad and zero tolerance of corruption.
India stands to benefit if the IMF quota reform happens as she will become the eight-largest quota holder, an improvement from eleventh. The US has been withholding ratification of quota reforms and Mr Modi expressed the hope that the US would ratify this. The challenges before the G20 countries on matters of growth and global trade are immense and the resolution did not seem to go beyond the much worn entreaties for transparency, removal of trade barriers and the mobility of goods, not to mention the implementation of the WTO Bali Pact.
The situation in Europe is worsening with the Syrian refugee problem and there seems little hope of a revival of the European economies. This will impact exports from the emerging economies. India has already experienced its 11th monthly drop in exports, in October largely. Hopefully the target of lifting global growth by two per cent by 2018 will be achievable in this scenario.
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