Black money hurts economy: Advani at UN

Noting that black money debilitates the economy limiting growth and investment in productive sectors, India has called for a war on corruption and transparency and accountability in governments.

"While this problem afflicts both developing and developed world, its consequences are more severely felt in the developing countries where it undermines the delivery of services and impact the people directly," Bharatiya Janata Party leader Lal Krishna Advani told a UN panel Tuesday, reading out a prepared official speech as an Indian delegate.

Opposition leaders are often asked by the government of the day to lead Indian delegations to various UN forums and read out texts prepared by the foreign ministry.

"The generation of unaccounted wealth or black money also has a major debilitating impact on the economy limiting growth and investment in productive sectors," he said participating in a debate on 'Social Development' in a UN general assembly committee.

The UN Convention Against Corruption needs to be ratified by all countries with meaningful cooperation at the international level to recover monies and assets stolen through corrupt practices stashed abroad, Advani said.

Noting that closing the implementation and enforcement gap remains an important priority, G20 leaders resolved at their recent Summit in Mexico, to pursue those who receive and solicit bribes as well as those who pay them, Advani said.

They also agreed to tracing assets in G20 jurisdictions and denying safe haven to the proceeds of corruption and to the recovery and restitution of stolen assets.

The post-2015 development agenda must continue to prioritise the eradication of poverty and all efforts in the next couple of years made to achieve the Millennium Development Goals, he said calling for more practical efforts to address the domestic financing gaps faced by many developing countries.

They need to effectively mobilise domestic resources including through prudent management of natural resources, governance reforms, more effective taxation policies and strengthening financial inclusion.

"Moreover, the issue of corruption needs to be tackled on a war footing and transparency and accountability ensured in the working of governments," Advani said.