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Think 20 Mumbai: Dialogue on Global Economic Governance

by Prableen Kaur, Ann-Margret Bolmer

Gateway House and KAS organize "Dialogue on Global Economic Governance"

On Jan 27th and 28th, 2018 Gateway House Mumbai in cooperation with the India office of the Konrad-Adenauer-Stiftung and others organized a dialogue on global economic governance. International financial architecture, fintech, sustainable finance and SME policy for development were the key focus areas of this event. The dialogue also highlighted global governance and the future of politics.

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Participants at the conference

Mr. Akshay Mathur, Director of Research, Gateway House welcomed the delegates. While giving an overview of the conference he stressed upon the cruciality of the areas of international law and digital economy. This was followed by the opening remarks from Ambassador Neelam Deo, Director, Gateway House. In her remarks, she elaborated on the fact that the need for reforms is recognized but there is no consensus as to how to reform. Mr. Kensuke Yanagida, Research Fellow, Japan Institute for International Affairs (JIIA) in his opening address to the gathering drew attention to the importance of leadership for sustaining multilateralism. As a representative of the government of Japan, Mr. Hidiki Asari shared how the techniques of disruptive innovation such as artificial photosynthesis are being practiced in Japan to counter climate change.

In the keynote address, Mr.Gitish Sharma, Secretary, Ministry of External Affairs remarked that the world is at the crossroads of transition today and the time has come to focus on inclusive growth in international and national contexts. He laid stress on the reform of World Trade Organisation to keep pace with the ever changing and ever more complex global economy. The issue of skill deficiency as an area of concern even in developed economies due to rapid technological changes was further highlighted by him.

Throwing light on the topic of global financial system Mr.Amar Bhattacharya from Brookings Institution emphasized on the fact that the shortcomings in the policies is the fundamental problem in the translation of tremendous needs and opportunities into realized investments. Taking the discussion forward Mr. Jose Siaba Serrate from the Argentine Council on Foreign Relations suggested taxation of cargo as a method for the easier and effective alignment of finance. He reiterated that sustainable finance should be mainstreamed.

In brief statements, the invited experts commented on the strategies for designing a global governance framework for fintech. Mohandas Pai, Chairman, Manipal Global Education explained the need for a global stress test for financial stability based upon certain events that impacted the flow of capital globally. He pointed to the disruption of the aspects of fintech industry caused by technological innovation and urged for suitable action to re-ensure stability. Mr.Mridul Sagar, Advisor, RBI elicited his thoughts on how the competition between fintech and bigtech eventuate in an impulse of technological progress in banking institutions. Mr. K.N.Vaidyanathan, Advisor and Adjunct Senior Fellow, Gateway House talked about the need to strike a balance between consumer protection and citizen rights.

The second part of the event gave the audience an insight into the recommendations for addressing the financial needs of the SMEs. Mr. Neelkanth Mishra, MD, Credit Suisse opined that the unwillingness to invest is a result of lack of awareness of people who need capital and the cost of processing which requires the same effort irrespective of the amount involved. Adding to this, Mr.Ajay Thakur, CEO,BSE SME Platform highlighted the inadequacy of professionals who can enlighten the SMEs about the importance of corporate governance in their business.

The fourth panel discussion dealt with examining the geopolitical challenges to globalisation. This session was moderated by Mr. Rohinton Medhora, President, CIGI. He addressed the phenomenon of the decline in the inequality between countries and a simultaneous rise of inequality within the countries.

Dr.Heribert Dieter, Senior Fellow, SWP explained how the weakness in the Chinese financial system and a grand coalition of Americans joined by Japanese and Europeans against it puts China in a wobbly position from conventionally assumed position of unassailable and fast growing economy. He subsequently shared his views on the need to limit hyper globalisation.

Dr. Peter Fischer Bollin, Deputy Head, Department European and International Cooperation, Konrad-Adenauer-Stiftung (KAS) concluded the session by giving a broad overview on geopolitical challenges such as migration, security and terrorism, strategic global competition and connectivity as seen from Germany and European Union’s perspective. He emphasized on the issue of the fight against youth unemployment in Africa, setting of standards for data protection and efforts of investment in Middle East and West Asia to prevent people from migrating.

Speaking on the need for an exchange within multilateral frameworks in times when unilateralism dominates, Mr. Peter Rimmele, Resident Representative to India, Konrad- Adenauer-Stiftung (KAS), iterated Germany’s support towards strengthening of platforms that promote multilateralism in his closing remarks.





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