IMF, World Bank should change outlook: Modi

Gujarat Chief Minister Narendra Modi has asked the state governments to use the present economic situation, arising out of the global financial meltdown, as an opportunity to build major infrastructural projects at affordable cost.

Speaking at the India Economic Forum Modi said he had already made plans to undertake an ambitious project that seeks to upgrade roads and other infrastructure in villages to bring the rural areas on a par with the urban areas. He said the cost of material and manpower was likely to be lower this time, which would make the project cost-effective. Besides creating jobs, the project – named ‘R-urban’— would also infuse life into the economy.

Modi, who is emerging as a development-savvy leader for the Indian companies, said it was time for countries to be vigilant against the possibility of infusion of ‘dirty money’ into their banking and financial systems. He was referring to drug cartels and terrorist groups who could use the state of depression to make hay.

Speaking on ‘New paradigm for securing inclusive growth’ before an audience comprising business leaders from 35 countries, Modi called for a change in the outlook of the global institutions like the International Monetary Fund and the World Bank, and also the political blocks like the G-20 and G-8 to usher in more equitable growth.

“Today, the developed countries feel they must look after the poor countries, while the under-developed nations keep complaining that nobody cares for them. However, the ideal situation would be when everyone starts thinking from the point of view of humanity,’’ said Modi.

Calling for a major shift in the concept of government, he said: “It is time for us to realise that people do not want government, they want governance.’’ He added while government meant “law and authority”, the concept of governance appeared to be soothing.

Modi also suggested that instead of making new five-year plans, the government and policymakers should review the previous ones. “What is the point in making the Eleventh Five- Year plan, unless we know why we have erred in the earlier plans,’’ he said. Modi claimed he had made these suggestions to the Prime Minister Manmohan Singh recently.

He invited the world business leaders to invest in Gujarat’s proposed gift city, coming up on the outskirts of Ahmedabad.