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Annual Report 2007-08
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:: PRESS RELEASES |
Mr. Justin Lin, Chief Economist, World Bank advocates globally
coordinated fiscal stimulus, at Exim Bank's Lecture
Mr. Justin Yifu Lin, Chief Economist and Senior Vice President, The World Bank, delivering the 24th Exim Bank Commencement Day Annual Lecture in Mumbai on March 13, 2009
Mr. Justin Yifu Lin, Chief Economist and Senior Vice President, The World Bank, delivering the Twenty-Fourth Exim Bank Commencement Day Annual Lecture, reflected upon the global financial crisis, its impact on developing countries, and ways to solve the crisis. Mr. Lin mentioned that commendable actions taken so far by various countries may not be sufficient to counter the huge downturn faced by the world economy. With general monetary policy being unlikely to be effective to stimulate investment and consumption in excess capacity situations, Mr. Lin opined that there is an urgent need for a globally coordinated fiscal stimulus, and called for decisive, concerted and cooperative efforts across countries.
On the occasion, Mr. T.C. Venkat Subramanian, Chairman and Managing Director of Exim Bank, welcomed the guests and highlighted that Exim Bank's Annual Lecture series, instituted in 1986 to mark the Bank's Commencement Day, has earned recognition as an important milestone in contributing to the debate and discussions on contemporary trade and development issues impacting global economy. Dr. Dilip M. Nachane, Director, Indira Gandhi Institute of Development Research, Mumbai, presided over the function.
Mr. Lin pointed out that while developed countries are experiencing some of the sharpest contractions in GDP growth, households in developing countries are much more vulnerable, and are likely to experience acute negative consequences in the short and long-term. Mr. Lin suggested that solution to the current crisis lies in putting the interests of the interlinked global economy as high as national interests. He stressed that a potential win-win situation could be to make bold global fiscal stimulus plans work by releasing bottlenecks to growth in developing countries, in order to generate an immediate and sustained increase
in global demand and productivity. He suggested that the main policy objective should be to create demand as quickly and efficiently as possible, and this can be achieved by channelling investment to where it can be most effectively utilized, as for instance in infrastructure.
Mr. Lin noted that global experience has shown that countries with effective safety nets that target the poor are the most successful in responding to crisis and that it is naturally easier to scale up an existing safety net program than to design a new one, particularly to respond to a current crisis. Accordingly, he suggested that India could make better use of existing Safety Net programs. As the global crisis reverberates and more and more people are out of work, Mr. Lin opined that the trade-off between employment generation schemes versus other traditional safety nets becomes important and merits a careful evaluation.
The function was well attended. The impressive audience included diplomats, senior bankers, corporate executives, academicians, representatives from industry associations and chambers of commerce, NGOs, as also research students.
For further information, please contact
Mr. David Sinate,
General Manager,
Export-Import Bank of India,
Centre One Building, Floor 21,
World Trade Centre Complex, Cuffe Parade,
Mumbai 400 005.
Telephone: (022) : 22218 1852,
Fax::(022) 2218 2572 .
E-mail:cag@eximbankindia.in
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