India for early completion of IMF quota reforms
St Petersburg: India on Thursday called for early completion of the International Monetary Fund (IMF) quota reforms to increase representation of the developing countries in the multi-lateral body.
"We must call for the earliest possible completion of the ratification process, so that the Fifteenth Quota Review can be completed in January 2014 as originally envisaged", Prime Minister Manmohan Singh said, expressing regret that the reform has not yet been finalised.
Aimed at improving the voting share of developing countries and achieving a better representation on the IMF Board, the reform of the international financial institutions has been a key part of G-20 agenda.
"We had hoped to be able to welcome ratification of the quota increase in the St Petersburg Summit, but that has not been possible", the Prime Minister said.
India currently has a voting share of 2.44 per cent in the Washington-based IMF. US has the highest voting share of 17.69 per cent.
Singh also made a case for active international cooperation for promoting investment in infrastructure in developing countries.
"Larger investments in infrastructure in emerging markets will increase the potential of these countries to grow more rapidly in the medium run and will also contribute to much needed global demand in the short run", he added.
Observing that industrialised countries have shown that unconventional monetary policy can be used to great effect, the Indian Prime Minister said: "We need to bring the same innovativeness in devising unconventional development financing also."
Singh said that the World Bank and ADB could create a special window for ensuring finance in support of infrastructure development, including provision of finance for ongoing projects which face a sudden scarcity of funds owing to volatile capital flows.
"Access to this window should be beyond the normal country limits, which otherwise introduce inflexibility. The aim should be to create mechanisms which can increase the flow of infrastructure financing at times when other investments are slowing down", he said.
The active involvement of international financial institutions in critical areas in developing countries, he said, can often leverage greater private investment flows to these areas.
"The IFC has done sterling work in many sectors, and a greater involvement of the IFC in infrastructure financing would help catalyse private sector flows into this sector", he added.