There are times when a country has the calling to step forward on the world stage and transform its role from that of a passive follower to that of a leader. That time has come for India—it must seize the moment.
The reordering of the global economic power structure, with the G20 now taking a prominent role, has created a leadership void among emerging markets.
There is the risk that the emerging market agenda could be taken over by countries that are seen as advancing just their own narrow interests. This would heighten tensions with advanced economies and work against global cooperation.
Political leaders need a new way to balance global financial risk – here’s how. Everyone is now keenly aware of the imbalances that allowed the financial crisis to develop into a cataclysm. But governments are pursuing the same old policies that brought on the crisis in the first place, because no one has yet succeeded in giving countries incentives to take global financial stability into account when crafting their domestic policies. It’s time for a new approach.
U.S.- China Economic and Security Review Commission: Hearing on “China’s Role in the Origins of and Response to the Global Recession”
Chairman Bartholomew and honorable members of the Commission, thank you for the opportunity to share with you my views on the timely and important topic of China’s role in the international financial crisis and its implications for the U.S.-China economic relationship.
The U.S. and China are two of the dominant economies in the world today and the nature of their relationship has far-reaching implications for the smooth functioning of the global trade and financial systems. These two economies are becoming increasingly integrated with each other through the flows of goods, financial capital and people. These rising linkages of course now stretch far beyond just trade and finance, to a variety of geopolitical and global security issues. Getting this relationship right is therefore of considerable importance.
Timothy Geithner, in his first foray into international economic affairs as US Treasury secretary, has kicked off a public row with the Chinese by accusing them of currency manipulation. The Chinese have vehemently rebutted this accusation and flexed their own muscles, telling the US to get its own house in order before lecturing others.