Effectiveness of Multilateral Institutions Has Reduced, Can't Take Their Directives for Granted: Sitharaman

Finance Minister Nirmala Sitharaman on Friday said that due to reduced effectiveness of multilateral institutions like the UN Security Council or the WTO, there is no need to take for granted their directives.

Addressing the inaugural session of the Kautilya Economic Conclave 2023, Sitharaman said, "Globally, we don't need to hesitate any longer to say that multilateral institutions, not just banks, but even UN, the UN Security Council, or any other (organisations like) WHO, WTO are less than effective from where they were made into institutions. The level of effectiveness of their intervention that they were to bring into the global scenario is today at less than an ideal position. Because they have become less effective, what we took for granted is no longer to be taken for granted."

"We thought if there was a disruption somewhere, the WTO would come into play, if there is a huge pandemic, the WHO would come into play. Similarly, in the developmental agenda of different countries at different levels of development, there would be timely and periodic interventions with which you would see some change with the spirit of inclusiveness so that less developed countries achieve their aspirations, but we find that less effective in all these institutions," the finance minister noted.

On the financial front, Sitharaman said that the government was conscious about its debt position.

"We are conscious about the debt of the Government of India today. Compared to many others it might not be as high as it is, but even there we are consciously looking at experiments in different parts of the world. Again, some of the data about some emerging market countries about how they are managing their debt is something which is actively in our minds in the ministry, and we are looking at ways in which we can bring down the overall debt," said Sitharaman.

Speaking on the prevailing global situation and the impact of various conflicts in Israel and Ukraine, the finance minister said that investors' businesses will have to factor into the decision making process, the impact of global terror.