Synopsis: Speaking at the G-24 Intergovernmental group on 'Bretton Woods System at 80: Multilateralism in a changing world,' former Chief Economic Adviser KV Subramanian emphasized the need for equitable policies for the Global South.
Speaking at the G-24 Intergovernmental group on 'Bretton Woods System at 80: Multilateralism in a changing world,' KV Subramanian emphasized the need for "even-handedness in policies, especially for the Global South."
Krishnamurthy V Subramanian, former Chief Economic Adviser, pointed out that emerging economies like India will contribute significantly more to the global economy in the next 80 years compared to the past 80 years.
He advocated for balanced climate and trade policies.
He stressed that even-handedness is crucial for the Global South due to its increased economic weight and future growth potential.
Subramanian, now an Executive Director at the International Monetary Fund, explained that policies fostering growth in these economies would benefit the global economy.
He highlighted the inequities in climate policies that hinder emerging economies' growth and emphasized that advanced economies have higher per-capita emissions.
He also noted that sovereign credit ratings often unfairly affect countries needing climate financing, increasing their investment costs.
Subramanian urged the Bretton Woods institutions (World Bank and IMF) to facilitate climate financing by creating markets for long-term hedging against foreign exchange risk.
On trade, he criticized the persistent non-tariff barriers in advanced economies and their push for emerging markets to reduce tariff barriers.
He argued for balanced trade policies that address both tariff and non-tariff barriers and promote trade in manufacturing and services.
He pointed out that advanced economies have historically implemented industrial policies to develop their industries and are doing so again, pushing emerging markets to follow suit.
Subramanian concluded that the World Bank and IMF should advocate for policies that benefit all members, considering these disparities.
In conclusion, KV Subramanian urged the World Bank and IMF to adopt balanced policies that support the Global South, particularly in the realms of climate and trade.
He emphasized the growing economic importance of emerging economies like India and the need for equitable policies to foster their growth.
Subramanian highlighted the discrepancies in climate and trade policies that disadvantage these nations and called for reforms to ensure that all member countries benefit from the initiatives of the Bretton Woods institutions.
