The Hindu Business Line : ‘Restructure IMF, World Bank’

The President, Ms Pratibha Devisingh Patil, has stressed the need for restructuring the International Monetary Fund and the World Bank on a broad basis. This is necessary as the global economy today is so integrated that what happens in one part of the world can affect different parts.

“We need to have a more participative and inclusive financial architecture for the management of the global economy that can be more responsive in preventing the recurrence of economic crises in the future. India can contribute to this process in a significant way,” Ms Patil said in her valedictory speech at the 7th Pravasi Bharatiya Divas Convention here on Friday.

The global economic crises has opened the debate of financial management of credit and banking systems, which triggers the meltdown. It is now raising the spectre of recession in several countries

“We need to learn lessons from the ongoing crisis and take measures to secure the future growth prospects of the global economy. This is also an opportunity to review existing global financial systems, structure and coordination mechanisms with a view to take corrective measures,” she said.

Ms Patil also stressed on the need to create better regulatory systems and best practices in the management of capital markets as well as in fiscal policy. Global financial markets need a coherent set of transparent rules for all of the participants to have a fair and orderly market. “We must enforce them evenly,” she said.

growth impetus

India has an effective capital market regulator and as strong a central bank. The country’s banks and financial institutions are based on fiduciary responsibility, are adequately capitalised and well-regulated. The growth impetus of the Indian economy stems essentially from its large and growing domestic market.

“We have in the last five years seen high rates of domestic savings and investment. Our economy has both the capacity and resilience to remain on course for economic growth,” she said.

The President said India offers the opportunity to invest in a stable, growing market. “I would like to see overseas Indians benefit from the various economic opportunities that India offers, in particular the huge investment options in India’s infrastructure. Your [NRIs] decision to invest in India will also be a strong rebuff to the terrorists who attacked Mumbai. These attacks were perpetrated by groups inimical to a progressive, prosperous and secular India.”

Ms Patil honoured overseas Indians, including Mr Ramdien Sarjoe, Vice-President of Suriname, and Mr Angidi Chettiar, Vice-President, Mauritius, with the conferment of Pravasi Bharatiya Samman.

Nearly 1,500 delegates took part in the Convention from 48 countries, including exhibitors, the number is over 3,000. Maximum numbers of 270 delegates were from Malaysia followed by 127 from the US, according to a press release.

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