However historic these decisions could be termed, there is considerable skepticism as to what extent the nations who sat round the high table would act up to them in the coming months and years, in the absence of any enforceable mechanism. For President Barack Obama, entangled in a web of domestic controversies over his health care and energy reforms and given a failing strategy in Afghanistan, all lowering his popular rating somewhat, the Summit represented a sort of personal triumph in his determination to lead the world economy away from 'boom and bust' cycles and secure recovery at home and abroad. This, he said, would lay the groundwork for long-term prosperity.

The global economy has been brought back from the brink and since it is fundamentally inter-connected, he said, 'we now need to act together to make sure our recovery creates new jobs. There is growing international concern, even as the advanced economies show signs of slowly emerging out of recession, over the massive unemployment the global crisis has wrought. Over 15 million workers have been displaced from jobs in industrial countries since the onset of recession in USA (December 2007). In the developing world, it is both a job and social crisis with an estimated 90 million people pushed below the poverty line.

Developed countries' average unemployment rate would peak 10 per cent in 2010. This is the biggest worry for the Obama Administration. The G-20 rightly decided that this was no time for any withdrawal of the coordinated stimulus, especially in Europe and USA, a point stressed by Dr.Manmohan Singh who pointed out developing countries were the hardest hit by loss of exports and capital flows from a crisis not of their making. The leaders pledged to sustain their strong policy response until 'durable recovery' is seen. 'We will ensure when growth returns, jobs do too. We will avoid any premature withdrawal of stimulus'. At the same time, they would prepare exit strategies and would, when the time was ripe, withdraw the extraordinary policy support in a cooperative and co-ordinate way, maintaining our commitment to fiscal responsibility. This is certainly a hard undertaking but eagerly looked forward to by developing countries hoping for early return to pre-crisis levels of exports and capital flows, no matter the global demand pattern is potentially set to change as a result of the crisis.

Overall, India has reasons to welcome the outcome of Pittsburgh Summit as, for the first time after decades of failed efforts of developing countries to reshape the world economic order, there is formal recognition that these countries, especially the dynamic

Economies in Asia and elsewhere, have become the growth engines for the post-crisis world. Essentially, the 'Global Architecture' now fashioned is a Compact that commits G-20 countries to assess how they fit together in advancing the shared objective of sustainable and balanced growth. They would evaluate whether their collective growth is consistent with the objective, a role also assigned to IMF has tentatively projected global growth, contracting this year, to grow by 3 per cent in 2010 but it has called for sustaining supportive policies until stable recovery takes hold, especially in view of the rise in unemployment next year and persisting financial sector problems which require timely steps to restore the health of banks with impaired assets. IMF points out that the new model for global economy outlined in the summit statement has implications for investment and innovation. Consumers in emerging markets would play a bigger role and the composition of global production is likely to change. All countries would have to accelerate structural reforms that would reduce barriers to competition and thus support innovation. In short, more savings in deficit countries (like USA) and more domestic consumption in surplus countries (China and other highly exporting nations like Japan and Germany).

The Prime Minister did not voice any serious reservations to the new Framework of Balanced Growth. The forum would discuss global macro-balances and the contribution individual countries could make through their own policies with the 'peer review' which G-20 countries would make between themselves. Dr.Manmohan Singh had been of the view that no country in an interconnected world, however powerful, could take the entire burden of economic adjustment and decision-making that might be required to manage the global system in an orderly manner.

However, some analysts opine that through the new Framework, Washington is passing on its problems to others. China's President Hu Jintao wanted all countries not only to keep up their growth stimulating efforts but also make greater efforts to boost consumption and expand domestic demand. Choices are harder for China whose high growth strategy of the last several years had become dependent on massive exports of its cheaper good specially to Europe and USA.

A second significant agreement at the Summit was to meet the demand of developing countries for enhanced voice in IMF decision-making by a shift in quota share of at least 5 per cent from over-represented countries (EU) to under-represented countries. The Summit also called for at least a 3 per cent increase in voting share for developing countries in the World Bank, which has been urged, along with other development banks, to have sufficient resources to meet the needs of developing countries, such as related to climate change and food secureity. The World Bank expects to complete its review of capital requirements by the first half of 2010. According to the Bank President Robert Zoellick, the post-crisis global economy would reflect the 'rising influence of China, probably of India and other large emerging economies'.

The Summit broke no new ground on the key issues of trade and climate change. The Obama Administration, with all its rhetoric, has been ambivalent in these areas, whatever the domestic compulsions. India strongly raised its voice against protectionism which would thwart hopes of an export revival for developing nations. All that the Summit had to say on these issues was: 'We will fight protectionism. We are committed to bringing the Doha Round to a successful conclusion in 2010' On climate change, where developed nations, particularly USA, have not given themselves any ambitious target to reduce carbon emissions, despite their historic responsibility for global warming, the Summit said, 'We will spare no effort to reach agreement in Copenhagen (in December) through the UN Framework on Climate Change negotiations'.(IPA)