» 06/19/2012 ASIA - EU - MEXICO G20: India promises $10 billion to save Europe The Brics (Brazil, Russia, India, China and South Africa) have announced contributions totaling $75 billion, to participate in the establishment of the $430 billion "firewall" wanted by the International Monetary Fund (IMF). New Delhi hopes to contain the fallout from the European crisis on its economy, while 360 million Indians (out of 1.2 billion people) still live on $1 a day.
Los Cabos (AsiaNews/Agencies) - India has pledged $10 billion
to the International Monetary Fund (IMF) to help eurozone countries overcome
the current crisis, and try to prevent possible effects on emerging economies
(the Brics: Brazil, Russia, India, China, South Africa). This was announced
today by the Prime Minister Manmohan Singh at the G20 in Mexico, in progress
during these days. The Indian contribution to the sum of the other Brics, who
together would participate with a total of $75 billion to the $430 billion
"firewall" that the IMF would create to counter new financial crises.
For now, Russia has pledged $10 billion, while China has pledged $43 billion.
With this contribution, the Brics are hoping to avoid any
negative impact on their economies, already tested in the last period. This
year India has recorded the lowest growth rate in the last 10 years, closing
the 2011-2012 year at 6%, compared with 8.4% in 2010-2011. Recently, the Prime
Minister announced investments of $1 million for new infrastructure (including
highways, ports and airports), hoping to revive the country's economy and
regain support among the population.
However, the reforms in question relate largely to the sector
of industries and large enterprises - 14% of the workforce - the protagonists
in the last 15 years of liberalization promoted by the Indian government.
Liberalization which, on the contrary, limit the productivity of self-employed
workers (craftsmen, small entrepreneurs) and farmers, increasingly relegated to
the margins. These sectors together account for over 90% of the workforce in
Meanwhile, while the Indian government promises economic aid
to rescue the euro, according to a survey by the Planning Commission, from 2004/2005 to 2009/2010, the level of poverty in India
declined from 37.2% to 29.8%. This means that in the country, about 360 million
people still live below the poverty line (about $1 per day), of a total
population of 1.2 billion. During the period under review, rural poverty has declined
more rapidly than urban poverty.