India can have a troublesome job as G-20 chair, says IMF chief economist

India, which is able to maintain the G-20 presidency subsequent 12 months, can have a troublesome job because the group’s chair to carry international locations collectively on a number of the key challenges being confronted by the world, Pierre-Olivier Gourinchas, the chief economist of the IMF, stated on Wednesday.

“One of many challenges for the G-20 proper now, as we have seen, is in fact how one can cope with geo-economic fragmentation. And geo-economy fragmentation is simply reflecting the truth that we have seen huge tensions following the Russian invasion of Ukraine,” Gourinchas advised PTI in an interview.

“To some extent to the G-20, it’s a lot more durable to have these sorts of conversations across the frequent items within the present atmosphere as a result of there’s all this stress associated to geopolitical issues. And so, India can have a troublesome job, but in addition, I might suppose one of many necessary aims shall be to maintain the international locations on the desk, to maintain the dialogue going, hold progress being made on necessary points,” he stated in response to a query.

Describing G-20 as a vital establishment, Gourinchas stated the group is the one place the place there’s governance representing the vast majority of the worldwide economic system coming collectively.

It isn’t only a group of wealthy international locations. It’s actually one thing that has a number of voices. Loads of progress could be made by G-20, he stated.

“One of many issues that we discuss very often within the context of the G 20 is the frequent framework. It is a vital initiative. It is nonetheless discovering its footing. We on the fund are considerably pissed off with typically an absence of progress on the frequent framework,” he stated.

But it surely’s a very necessary initiative that could possibly be made on the stage of the worldwide neighborhood, coming collectively and discovering methods by which sustainability issues could possibly be addressed, the chief economist stated, including that that’s one thing which the IMF is taking a look at very intently.

Observing that at a venue just like the G-20, multilateralism can actually have discussions on frequent items and make progress and customary items, Gourinchas stated: “So what are the frequent items that the place progress could possibly be made? Outstanding amongst these embrace the difficulty of local weather change and debt sustainability.”

Digitalisation, he stated, could be very a lot on the forefront. “The entire challenge of how the emergence of digital currencies, crypto belongings, how is that this going to stabilise, destabilise? How ought to we be doing? There are huge externalities on the international stage concerning the emergence of those new devices. So how are we as a worldwide neighborhood ought to we organise this area,” he stated.

“Ought to we regulate it? How ought to or not it’s regulated? The cross-border facet goes to be crucial. In order that’s clearly a standard good,” Gourinchas stated.