Eliminate safe havens, ensure extradition of economic offenders: PM Modi

India has been pressing for reform of the Bretton Wood Institutions - IMF and World Bank - which would give it and other major emerging economies greater say in the multilateral lenders.

By: PTI | Hangzhou | Published:September 5, 2016 3:42 pm
Narendra Modi, G20 summit, black money, G20, modi, china, India, news, india news, national news, latest news, world news A stable global economic and financial system is imperative for development, the prime minister said and called for further strengthening of the global financial safety net. (source: PTI)

Underlining that fighting corruption and black money is key to effective financial governance, Prime Minister Narendra Modi on Monday asked G20 leaders to act to eliminate safe havens for economic offenders, unconditionally extradite money launderers and end excessive banking secrecy that hide the corrupt.

“G20’s efforts should be for zero-tolerance for corruption and black money; zero administration, policy and treaty loopholes; zero barriers and full commitment to action,” Modi said in his intervention on the second day of the G20 Summit in this eastern Chinese city. Modi said fighting corruption, blackmoney and tax evasion were key to effective financial governance.

He said to achieve that “we need to act to eliminate safe havens for economic offenders, track down and unconditionally extradite money launderers and break down the web of complex international regulations and excessive banking secrecy that hide the corrupt and their deeds”.

A stable global economic and financial system is imperative for development as it promotes inclusive and sustainable growth, the prime minister said and called for further strengthening of the global financial safety net.

“We need a regular dialogue between the IMF, Regional Financial Arrangements and Bilateral Swap Arrangements. Important mechanisms like financial stability board should stick to their core mandate,” External Affairs Ministry spokesperson Vikas Swarup quoted the Prime Minister as saying in a series of tweets.

“IMF should remain a quota-based institution and not depend on borrowed resources,” Modi said emphasing that the “long-delayed 15th General Review of Quotas must be completed by 2017 Annual Meetings.”

India has been pressing for reform of the Bretton Wood Institutions – IMF and World Bank – which would give it and other major emerging economies greater say in the multilateral lenders. India had recently said governance reforms are required to ensure IMF’s credibility, legitimacy and effectiveness. Modi also said India needs energy to support its development. A “balanced mix of nuclear, renewal energy and fossil fuels are at the core of our policy.”

G20 member-states represent 85 per cent of the world’s GDP. Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the UK, the US and the European Union make the G20.