G-20 nations should be able to reach agreements on increasing the voice of emerging economies at the International Monetary Fund and augmenting the fund’s resources, according to a senior South Korean official.
The pacts should be endorsed at the G-20 summit in Seoul slated for Nov. 11-12, according to Sakong Il, program coordinator of the meetings for the South Korean president.
Such an accord on IMF voting reform will be the first step in allowing emerging economies such as China, India and Brazil to have a bigger say at the fund though at the expense of more advanced nations, particularly those in Europe.
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“It should be done ― it must be done ― for the G-20’s credibility, because leaders have already agreed on a 5 percent quota shift by November,” Sakong told The New York Times.
The voting reform will modify quotas, or proportion of funds, held at IMF by members, and involve a capital increase of probably 100 percent, according to international officials. Details of the reform are expected to be finalized at IMF’s October meetings in Washington.