Multilateral agencies such as the International Monetary Fund (IMF) and the World Bank should give fair representation to countries such as India that are providing stability to the global economy, said Anand Sharma, minister of commerce and industry.
Addressing the plenary session on 'Trading for aiding the global economy,' at the India economic summit, organised by the World Economic Forum and the Confederation of Indian Industry (CII) in Mumbai, Sharma called for reforms in the Bretton Woods institutions.
''The fulcrum has shifted when it comes to economic growth,'' noted the minister. ''The emergence of India and other economies are a factor of stability and growth. The new multilateral system must reflect contemporary world realities.''
The world needs to move faster on multilateral trading systems by completing the stalled WTO negotiations early, correcting historical imbalances, which would help make global trade more equitable and more accessible, he added.
''The multilateral system must reflect contemporary world realities,'' said Sharma. ''Cosmetic changes will not affect particularly in fiscal and monetary institutions like the IMF and the World Bank. We need faster reforms so that the countries which are factors of growth and stability are there.''
According to him, in difficult times, the tendency is for countries to look inwards, to have protective values. ''And that is something the G-20 must reassure the world that we will not allow that to happen,'' said the minister. ''The need is to engage more, not going in for protectionism.''