There is clear imprint of Prime Minister Manmohan Singh on the final economic strategy

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approved by G-20 leaders of industrialized and emerging countries.

G-20 that replaced G-8 as premier decision making body endorseddifferential economic strategy proposed by Manmohan Singh setting atrest the squabble as to continue or withdraw governments’ additionalspending to consolidate fragile growth.

The 25-page summit declaration adopted at Toronto on Sunday haseconomic prescription for different countries outlined by PrimeMinister Singh in his G-20. Advanced countries with huge deficits willwithdraw stimulus spending and pursue austerity. Others, including USand developing economies will continue with spending to supportfragile growth.

His experience as an economist and long stint as teacher at DelhiSchool of Economics (DSE) seems to have come handy for G-20 leadersincluding US President Barack Obama in clinching a largely agreeableeconomic package for next 3-5 years.

After India – US bilateral summit, President Obama did not hold backpraise for Manmohan Singh. In a brief interaction with newsmen, the US President remarked, “When Indian Prime Minister speaks (on economicpolicy) the world listens”.

This is not first time President Obama lauded economic genius ofManmohan Singh. At September 2009 G-20 Pittsburgh summit held in themidst of heightened economic crisis, the US President regarded Singhfor being the wisest at high table of world leaders and asked forprognosis.

It is not just President Obama that largely looked to Prime MinisterSingh for advice on policy prescription. Same was the sentimentpublicly aired by Canadian Prime Minister Stephen Harper who chaired G-20 summit at Toronto.

At the joint news conference after two countries inked several deals,Stephen Harper said, “we at G-20 do lean on Prime Minister Singh’swisdom and experience for guidance.”

On Saturday, when French President Sarkozy met Prime Minister Singhseparately, he sought latter’s advise on the vision document for G-20for next five years. France would takeover G-20 chairmanship nextyear.

As the mentor-in-making for G-20 that accounts for over 85 per centglobal economy, Singh has used his pivotal position to push fordeveloping countries’ agenda.

For instance, he has been singularly credited for a tilt in the finalsummit communiqué that favoured continued spend by governments toconsolidate growth and revive demand for goods and services.

In fact, briefing newsmen on Sunday, Finance Secretary Ashok Chawlacredited Singh for pushing the growth agenda. Similarly, Singh usedhis cloud to get better deal, i.e. an additional 5 per cent voicequota at IMF after having secured larger say in World Bank.

Singh has also pushed developed countries to agree for a three yearfreeze on any additional trade barriers and work towards early Doha trade negotiations.

G-20 communiqué: highlights

Allows UK, France and Germany to withdraw government spending to cut deficits

India, Brazil, US, South Africa, Argentina and Mexico to space-out stimulus withdrawal

Framework for development finalized

Fiscal deficit to be cut by half 2013, Japan exempted from this target

Debt as part of GDP to be reduced beginning 2016

No agreement on banks transaction tax, Euro-zone countries and US to go ahead with the levy

BRIC, Mexico, South Africa and Indonesia to push for financial reforms

Developing nations including India may get 5 % higher voice quota bynext summit in South Korea

Separate innovations fund to support small and medium companies

No additional trade barriers for next three years

Panel set up to suggest measures against corruption, terrorfinancing and money laundering

Financing and technology transfer for green technologies yet to be finalized

Four-pronged approach to bring about discipline in financial markets