Developing Countries Critical to IMF....We actually Support this View Whole Heartedly.....but actually there are some Variations..........
Developing Countries Critical for Development....of IMf.......
Several large developing countries which voted against an IMF reform plan said Tuesday that they would not give up their campaign to get a bigger voice at the Washington-based financial institution.
Monday night, the 184-nation International Monetary Fund meeting in Singapore approved reforms that increase voting shares of China, South Korea, Turkey and Mexico to reflect their growing stature in the global economy. In a second phase, the IMF plans to rework the voting rights of all member countries within two years.
But countries like India, Brazil and Egypt opposed the plan, saying they also were underrepresented at the institution. They argued that the entire power structure should be overhauled.
The 23 countries that opposed the plan "may have lost the vote, but we have not lost the argument," Indian Finance Minister P. Chidambaram said in an address to the boards of governors at IMF and World Bank.
"The real test of international cooperation is in the second stage," Malaysian Second Finance Minister Nor Mohamed Yakcop said. "Malaysia calls for a stronger commitment from advanced economies to limit their claims for higher quotas to allow emerging economies to have greater voice."
The weight of each country's vote in the IMF is linked to its quota, or financial commitment to the Washington-based institution. The quotas are determined by the size of their economy, openness to trade and other criteria.
India and other nations want a new formula that would use national income calculated in terms of purchasing power -- not dollars, which would be subject to exchange rate fluctuations -- and would take into account the need of large developing economies to protect their farmers and nascent industries from foreign competition.
Developing Countries Critical for Development....of IMf.......
Several large developing countries which voted against an IMF reform plan said Tuesday that they would not give up their campaign to get a bigger voice at the Washington-based financial institution.
Monday night, the 184-nation International Monetary Fund meeting in Singapore approved reforms that increase voting shares of China, South Korea, Turkey and Mexico to reflect their growing stature in the global economy. In a second phase, the IMF plans to rework the voting rights of all member countries within two years.
But countries like India, Brazil and Egypt opposed the plan, saying they also were underrepresented at the institution. They argued that the entire power structure should be overhauled.
The 23 countries that opposed the plan "may have lost the vote, but we have not lost the argument," Indian Finance Minister P. Chidambaram said in an address to the boards of governors at IMF and World Bank.
"The real test of international cooperation is in the second stage," Malaysian Second Finance Minister Nor Mohamed Yakcop said. "Malaysia calls for a stronger commitment from advanced economies to limit their claims for higher quotas to allow emerging economies to have greater voice."
The weight of each country's vote in the IMF is linked to its quota, or financial commitment to the Washington-based institution. The quotas are determined by the size of their economy, openness to trade and other criteria.
India and other nations want a new formula that would use national income calculated in terms of purchasing power -- not dollars, which would be subject to exchange rate fluctuations -- and would take into account the need of large developing economies to protect their farmers and nascent industries from foreign competition.