G20 Summit: PM Modi says fighting corruption, black money, tax evasion key to effective financial governance

Underlining that fighting corruption and black money is key to effective financial governance, PM Modi asked G20 leaders to act to eliminate safe havens for economic offenders.

Hangzhou: Underlining that fighting corruption and blackmoney 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. 

Later in the day, Modi made another intervention at the summit on 'Robust International Trade and Investment', where he said the "global trade is at a cross roads".

He said the vision of a "transparent, equitable, non-discriminatory, open, inclusive and rule-based global trading architecture should underpin collective efforts".

Modi urged G20 member-states to fully implement the Bali and Nairobi Ministerial decisions to facilitate trade.

The Nairobi Decision builds on the earlier 2013 Bali Ministerial Decision on preferential rules. It include Ministerial Decisions on agriculture covering a Special Safeguard Mechanism for developing countries (to counter import surges of farm items).

"Global trading regime must respond to needs & priorities of developing nations. Global value chains must provide them level playing field... India's priority is to work towards Trade Facilitation Agreement for Services," Modi said.

"G20 needs to act to stimulate investment flows. Transformed and liberalised investment regime has put India among top host nations for FDI," the prime minister said.

He closed his second intervention of the day saying global investment principles shouldn't be prescriptive. "Countries need policy space depending on national circumstances and development focus."

Narendra Modi on Monday made it clear that effective financial governance requires "full commitment" to act against the corrupt and elimination of "safe havens" for economic offenders as he called on G20 members to break down the web of excessive banking secrecy.

In his intervention on the second day of the G20 Summit in this east Chinese city, Modi said fighting corruption, blackmoney and tax-evasion were central to effective financial governance.

To achieve that, he said, "we need to act to eliminiate 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".

The prime minister said that a stable global economic and financial system is imperative for growth as it promotes inclusive and sustainable growth.

He 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."

The Prime Minister also said that India needs energy to support its development. A "balanced mix of nuclear, renewal energy and fossil fuels are at the core of our policy."

The 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.