The Hindu Business Line : Strong response to corruption needed: Volcker

MORE NEEDS TO BE DONE: Mr Paul Volcker (left), former Chairman, US Federal Reserve, and Mr Graeme Wheeler, Managing Director, World Bank, at the Second SAARC Business Conclave in Mumbai on Sunday. Mr Volcker said "There is greater sensitivity to corruption these days," but still more needs to be done. — Shashi Ashiwal

Advertisement

Mumbai Feb. 18 "There is greater sensitivity to corruption these days," but still more needs to be done, said Mr Paul Volcker, former US Federal Reserve Chairman and author of the Volcker committee report on the United Nations Oil-for-food programme.

"South Asia still ranks low on international tables on governance and corruption. On corruption issues the Indian government has responded well, the facts speak for themselves," he said, with regard to his recommendations on the oil-for-food scam.

He was speaking at the second SAARC business leaders conclave organised by the Federation of Indian Chambers of Commerce and Industry.

While some countries have responded well to his findings, many others, particularly smaller countries have not taken steps to deal with corruption.

As far as the UN was concerned, it has done a lot of reforms on paper but there has been no progress in mechanism to enforce implementation.

Inflation

On the rising inflation he said, "I worry about inflation all the time." Inflation has to be contained to sustain the growth momentum; he said, adding that

"You don't want a situation where people are worrying about inflation."

He said that the Reserve Bank of India was doing its job. Inflation touched 6.73 per cent, the highest over the last two years.

He called for open markets, rule of law, transparency in procedures and elimination of corruption for giving a fillip to the manufacturing sector and making a dent on poverty.

Talking about foreign investments he said, "for infrastructure development, global capital is necessary," and added that "international flow of funds could provide benefits in terms of resources and technology."