Be result-oriented

Dear editor,

The finance ministers of G20 nations at Gyeongju (South Korea) on Oct. 22 and 23 proved their maturity of thought by agreeing to the sustainable balanced growth of the global economy based on cooperation without any unhealthy competition of devaluing and appreciating their respective currencies.

We certainly need to limit external imbalances. There is no logic and rationale for a target-oriented approach for a current account deficit as a percentage of GDP. We need to be result-oriented.

We should adopt a prognosis approach, instead of a postmortem approach in our mentality of accusing others instead of doing our own soul searching. The mutual assessment process of the International Monetary Fund (IMF) has merit and deserves the support of the G20 leaders.

Market-determined exchange rates are the only practical solution to stop an exchange rate war for once and for all.

I place on record an appreciation for China which to me is an abbreviation for “Come Home I Need Affection” by endorsing the agreement. Let China have a bigger share at the IMF. There should be no problem raised by anyone.

We certainly need good governance at the IMF which means a smart administration, which includes simplicity, morality, action oriented, responsive and transparency as its components. Let mutually agreed upon rules and regulations come from the G20.

We need not be complacent for the agreements at Gyeongju until they are finally approved by the upcoming G20 summit in Seoul.

Dr. M.M. Goel

Professor of Indian economy

The Graduate School of International and Area Studies

The Hankuk University of Foreign Studies

Seoul