Ficci urges G20 to protect real economy

New Delhi, Nov 15 (UNI) A leading Indian chamber has urged the G-20 leaders,meeting in Washington today, to come up with a global economic roadmap to protect the real economy.

While endorsing the final declaration made by the chambers of commerce of G-20 countries, Federation of Indian Chamber of Commnerce said it stood for respecting role of private sector and transparent competition even while drawing lessons of financial crisis which has roiled the world economy.

The industry chamber, however, feared that principles of free market could get compromised to some extent by large interventions in banks and bailout packages by governments around the world.

At the same time, the declaration urged the G-20 leaders to frame proposals for strengthening supervisory structures at national and supranational level. It also sought enhancing cooperation between developed and emerging economies for reducing global economic, monetary and trade imbalances.

The declaration sought an enduring role for emerging economies in international economic and financial fora such as the International Monetary Fund, World Bank and Financial Stability Forum.

The chambers of commerce of the G20 countries are of the view that world growth is likely to hover around 3.9 per cent in 2008 and three per cent in 2009, adding projections could be revised down further.

Inflation could decline due to lower commodity prices, declining growth and reduced demand, the chambers said but urged policy makers to take measures to prevent deflation.

Accepting that ongoing financial crisis will hit hard developed as well as emerging economies, the chambers wanted G20 to be followed by a series of international summits for ''restructuring and stabilising'' the global financial system.

The signatories to declaration wanted all stakeholders to work hard to conclude a comprehensive Doha agreement in the coming weeks.

They warned that failure could lead to protectionist measures by nations and also threaten credibility and life of the multilateral trade system.

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