Arab Today, arab today emerging powers rise in imf
Last Updated : GMT 10:02:48
Arab Today, arab today
Arab Today, arab today

As US unblocks reforms

Emerging powers rise in IMF

Arab Today, arab today

Arab Today, arab today Emerging powers rise in IMF

The US Congress approved long-stalled reforms of the International Monetary Fund
Washington - Arab Today

China, India and Russia will soon speak with a louder voice at the International Monetary Fund.

After years of opposition, the US Congress has dismantled the final barrier to reforms that will give the emerging-market powers more say in the affairs of the 188-nation global crisis lender.

The IMF reforms are part of a $1.1 trillion spending package approved by Congress on Friday, and signed into law by President Barack Obama.

Adopted in 2010 by the international community, the reforms were expected to take effect in 2012.

But with the United States holding by far the largest share of voting rights at the IMF, Congress's refusal to approve the reforms had held up their implementation, to the consternation of IMF management and members.

The blockage has been a sore point between President Barack Obama's Democratic administration and the opposition Republicans who control Congress.

Republicans had rejected the slightest favorable gesture toward the multinational organization, the object of some criticism in Washington for its largesse toward Greece.

In recent years, international summits have unfailingly included a pointed reminder about the stalled reform process -- seen as all the more frustrating since the United States was among the first countries to call for an IMF overhaul in 2010 amid the global financial crisis.

At the end of their last summit in mid-November in Turkey, the Group of 20 economic powers said in a statement that they "remain deeply disappointed" with the delay in reforms and "we urge the United States to ratify these reforms as soon as possible."

The long stall also led the so-called BRICS -- Brazil, Russia, India, China and South Africa -- to set up an economic alternative, launching in July 2014 their own monetary fund and development bank.
The US approval will likely ease their frustrations with the 70-year-old IMF, dominated by the US, Europe and Japan, as well as remove a major headache for the Obama administration.

"The IMF reforms reinforce the central leadership role of the United States in the global economic system and demonstrate our commitment to maintaining that position," US Treasury Secretary Jacob Lew said in a statement.

- IMF credibility on line -

The reforms, however, are crucial for the IMF itself. They double the crisis lender's permanent financial resources, known as quotas, to some $660 billion.

The green light by Congress thus paves the way for the IMF to abandon some makeshift mechanisms it had adopted to keep its finances afloat and finance rescues of members in crisis.
But above all it allows the Washington-based institution, founded in 1945, to better reflect the current interconnectedness of the world economy, exposed in stark relief during the 2008-2009 global crisis.  

The measures slightly reshuffle the IMF executive board by reducing the representation of advanced economies, particularly in Europe, to give a greater voice to dynamic emerging powers.

Currently China, the world's second-largest economy, has less than 4.0 percent of voting rights at the IMF, only slightly less than Italy whose economy is five times smaller.

After the reforms are implemented, China will see its voting rights nearly double to over 6.0 percent, the largest gain. For example, India's weight will rise from 2.3 percent to 2.6 percent.

The US action also hands a personal victory to the managing director of the IMF, Christine Lagarde, who has been pushing hard for the changes to preserve the credibility of the Fund.

Lagarde once joked she would "do belly-dancing" if needed to get US ratification.

"The United States Congress approval of these reforms is a welcome and crucial step forward that will strengthen the IMF in its role of supporting global financial stability," Lagarde said.

Still, the reforms will not resolve all the representation problems at the IMF. With 16.5 percent of voting rights, the United States remains the largest stakeholder and continues to hold veto power.

"The IMF reforms remove a stain on the institution's legitimacy," Eswar Prasad, a former IMF official, told AFP.

"However, the scars caused by the protracted delay in having these reforms ratified and put into operation will not be easily erased."
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today emerging powers rise in imf Arab Today, arab today emerging powers rise in imf

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Rebel supporters flood Yemen streets

GMT 06:39 2017 Monday ,27 March

Rebel supporters flood Yemen streets
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people

GMT 12:21 2017 Wednesday ,22 March

Economic expert call Tunisian government

GMT 19:15 2017 Tuesday ,21 March

EFB ranks first in world food banks

GMT 14:47 2017 Tuesday ,21 March

Minister stresses his country's aspiration

GMT 20:24 2017 Monday ,20 March

MP reveals details of British delegation's visit

GMT 16:14 2017 Saturday ,18 March

Egyptian professor calls to get rid of corruption

GMT 11:04 2017 Wednesday ,15 March

Blames the government for economic crisis
View News in Arabic - Business: أخبار الاقتصاد
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Trump to roll back Obama clean power plan

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 06:04 2017 Tuesday ,28 March

Saudi Arabia ranks 3rd globally for smartphone use

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday