Improving the international financial system requires better management of national financial sectors and also enhanced international cooperation and coordination, because in a globalized economy with strong, complex, cross-border linkages, even domestic financial stresses can have serious international repercussions. Countries need to work together to ensure that weaknesses in the global financial system are recognized and addressed.
The IMF has estimated that if India's relative per capita income rises by under 2 per cent, it will take more than a 100 years to close half the distance from the developed countries' per capita income levels. If India's per capita income grows by three per cent in real terms, it will still take 69 years to close half the gap.