The global crisis concerns everybody, but only those countries where the crisis started should take decisions on the way out of it, Suresh P. Prabhu, an ex-Minister of Industry, Energy and Environment of India, declared in the course of discussing the problems of the global economy at the 8th Annual Meeting of Yalta European Strategy.
“Speaking about the crisis, it, of course, concerns everybody. It influences every citizen of the planet. But decisions on stabilizing the economy should take those countries, which led to this crisis”, Suresh P. Prabhu believes.
According to him, the economic crisis started with the financial one, which sources are rather clear. “We should understand who created the financial crisis, through which wrong policies and how it has happened that derivatives started to compose 30-40% of the world’s GDP. Very many people lost their incomes although they have nothing to do with the crisis,” he said.
In Suresh P. Prabhu’s opinion, creating demand per se is not the only action to address the global economic problems. “To create demand, we need to create incomes. The structure of sectors, the structure of markets should be modified and we should see whether we can actually create new demand and new incomes in some branch, for instance, in the energy market. We should not ignore reality,” he accented.
India, according to the ex-Minister, expects a 7% economic growth this year. “We would cooperate very closely with the US and other national markets. We are speaking of global economic integration and this may turn into an advantage if the entire global economy moves in the right direction, if it grows,” Suresh P. Prabhu noted.
International Renaissance Foundation