Nirmala Sitharaman calls for 'concerted action' against economic slowdown at IMF

Washington DC: Union Finance Minister Nirmala Sitharaman on Friday gave a clarion call for ‘concerted action’ to mitigate the disruption on account of synchronous slowdown and to invoke the spirit of multilateralism for global growth during an annual meeting plenary session of the International Monetary Fund (IMF) and the World Bank Group held in US.

In a press release issued by Finance Ministry, it said that the Finance Minister led a delegation to the IMF plenary session and said, "trade wars and protectionism have generated uncertainties that will ultimately impact the flow of capital, goods and services."

She further said, "the increased trade integration, geopolitical uncertainties, and high accumulated debt levels necessitate strong global coordination and that we need not wait for the slowdown to become a crisis."

Concerted action refers to an action which is planned, arranged, and agreed on by parties acting together to further or fulfill some plan or cause. In a concerted action, all the individuals involved are liable for the actions of one another. Concerted action is also termed as a concert of action.

The 40th meetings of the International Monetary and Financial Committee (IMFC) of the IMF are being held at this year’s Annual Meetings. The IMFC Introductory Session was focused on Global Developments and Prospects and the discussions centred on the World Economic Outlook released on October 15, 2019.

The Early Warning Exercise discussed upcoming risks to the global economy and stability. A special session on IMF resources and governance was also held in the day, in the context of the 15th Round of the quota discussions concluding this year. Secretary, Department of Economic Affairs, Shri Atanu Chakraborty, led the Indian delegation at this session.

On the side-line of the above meetings, the Finance Minister held several bilateral meetings, including with the First Deputy Prime Minister and Finance Minister of Russia, Mr. Anton Siluanov; Finance Minister of the Kyrgyz Republic, Ms. Baktygul Jeenbaeva; Finance Minister of Switzerland, Mr. Ulei Maurer; the Australian Treasurer, Mr. Josh Frydenberg; and the Finance Minister of Maldives, Mr. Ibrahim Ameer. In these meetings, the two sides discussed issues of common interest.

The Finance Minister is currently on an official tour to Washington DC to attend the Annual Meetings of the IMF and the World Bank and other associated meetings. She is accompanied by Secretary, Department of Economic Affairs, and other officials from the Department.