‘Increased Integration of China and India in the Global Financial System: Issues and Implications’

May, 26, 2006

The World Bank – IMF Annual Meetings 2006 in Singapore will feature a Series of Seminars organized around the theme of China and India as major emerging players in the world economy. One of the key issues that the Seminars will examine is the ‘Increased Integration of China and India in the Global Financial System: Issues and Implications’. In preparation for this, the Bank has commissioned a set of background papers by experts from India and China. Preliminary drafts of these papers were discussed at a workshop held in Beijing on March 16, 2006. A similar workshop was held in New Delhi on May 26, 2006 at The Imperial Hotel to present these papers for comments and feedback from senior policy makers, practitioners, and academics in India.

The Delhi workshop, organized jointly by ICRIER and the World Bank discussed two broad sets of questions underpinning the background papers that have been prepared: First, how is the emergence of and policy changes in China and India changing the patterns of international capital flows and balance sheets? Second, and more broadly, what issues and challenges does the increased integration of China and India in the international financial system pose for the global financial system?