To bolster the credibility of the International Monetary Fund in the developing world, poor nations need to have a bigger say in running the institution, The New York Times says.
The U.S. and Europe may want to consider abandoning their 65-year-old agreement that places a European to the top IMF post and an American to the World Bank’s helm. Wealthy nations should also give more voting power to developing countries such as China, Brazil and other emerging economies, whose increasing economic influence is not reflected in say at the fund, according to the newspaper.
The paper supported IMF’s appeal for USD250 million more to replenish its resources. The G-20 agreed to triple the fund’s resources to USD750 billion a year ago.
“We know that calling for more money for the I.M.F. will not be politically popular, especially at a time when governments around the world have vowed to cut spending at home,” according to The New York Times. “These are perilous times. And a strong, credible and well-financed fund is absolutely essential for global economic stability.”