IMF boosts voting power of China and three others
(Reuters)
Updated: 2006-09-01 10:23
Approval of the package follows months of political jockeying among the IMF's
184 member countries and strong doubts, in particular, of developing nations
about whether the move would amount to significant change.
In reaction, the United States, the IMF's largest and most influential
member, said it was pleased with the decision.
"An effective IMF needs a modern governance structure that legitimately
represents its members and takes into account the rapid growth in emerging
markets and their increasing role in the management of the world economy," said
Brookly McLaughlin, U.S. deputy assistant secretary for public affairs.
It was important, she added, that changes be part of a broad package, which
includes overhauling the outdated quota formulas to better reflect gross
domestic product and a further round of increases for emerging markets.
"We also believe it is critical to ensure that the voice of low-income
countries is protected and other reforms are included, such as rewriting
30-year-old rules to improve surveillance of exchange rates," she added.
The United States has backed China's quota increase, even as U.S.
legislators threaten to impose trade tariffs on China over its exchange rate policy.
Developing countries have long pushed for changes in the IMF's voting
structures, arguing that it undermines the fund's legitimacy at a time when it
is seeking a greater role in monitoring the global economy, including the
exchange rates of emerging economies like China.
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