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Give more voice to developing nations in IMF, WB: BRIC

Last Updated: Saturday, October 3, 2009 - 21:43

New Delhi: India and its three BRIC partners Brazil, Russia and China have agreed to push for a seven percent shift in quota share for emerging economies in the IMF and another six percent in the World Bank for developing countries.

At a meeting convened by Finance Minister Pranab
Mukherjee in Istanbul, Finance Ministers of the BRIC quartet
finalised their common position ahead of the Fund-Bank meeting
in the Turkish city on October 6.

The ministers conveyed to US Treasury Secretary Timothy
Geithner, who attended the BRIC meeting for some time, the
agreement reached by them on governance issues of IMF and the
World Bank.

Geithner acknowledged the role of BRIC nations in finding
solutions to world`s problems.

"On the IMF side, the ministers discussed the process of
achieving a significant shift in quota shares in favour of
dynamic emerging markets and developing countries. They agreed
to aim for a seven percent shift," an official statement

The G-20 leaders last week agreed to move at least five
percent of the IMF`s quota share to developing countries from
over-represented ones.

They also discussed the "New Arrangement to Borrow"
(NAB). The NAB is a special credit arrangement between the IMF
and 26 members and institutions to provide supplementary
resources in times of financial crisis.

On the World Bank side, they discussed how to enhance
the voice and participation of developing countries in the
World Bank and agreed to aim for a shift of six percent "for
parity", it said.

The finance ministers also discussed the "adequacy of
capital resources of the bank and supported an increase in the
capital for both the World Bank and IFC".

Earlier in Pittsburgh, the G-20 nations had agreed to
effect a 5 percent shift in the IMF quota share — used to
allocate voting rights — from over-represented countries to
dynamic emerging markets and developing countries like
India, currently under-represented, by early 2011.

Prime Minister Manmohan Singh has said 5 percent is a
"compromise" figure as India and other emerging nations wanted
a seven percent share.

Bureau Report

First Published: Saturday, October 3, 2009 - 21:43
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