The Reserve Bank of India (RBI) Executive Director Rabi Mishra has said that the Global financial institutions like the International Monetary Fund (IMF) and the World Bank should consult developing economies before taking any decisions on them.
While speaking at the conclusion of the three-day Kalinga Literary Festival in Bhubaneswar, Mishra said that instead of imposing decisions on member states, the IMF and the World Banks should take into consideration the current reality of the developing economies.
“The top-down approach hardly produces any result as countries such as China does not even attend the meetings of IMF. Decisions of the global financial institutions would be more inclusive if they adopt a bottom-up approach instead of just conveying the desires of the US and UK,” he said.
Mishra further said that financial regulations in India insulated the economy from the global economic crisis in 2008.
Talking on his recently published book ‘Systemic Risk and Macroprudential Regulations’, he said that a coordinated approach in decision making is the key feature of a robust economy.