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IMF Shifts Balace of Power
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The IMF plans to redistribute voting power in the organisation. It has recommended changes which would base the power of each of the IMF's 185 member countries on the size of their economy, reserves and trade.
The US has expressed reservations about the move but said that it would support it because it represented progress.
Poorer nations and charities have said the plans, which must still be ratified, do not go far enough to move some sway away from traditional industrial powers including the US, the UK and Germany - to the faster-growing emerging and developing economies.
China, India, South Korea, Mexico and Brazil are among those that will see their voting power increase.
However, under the proposal the likes of Saudi Arabia, Egypt, Russia, Iran and Argentina would lose influence and all five countries either voted against the plans or abstained from voting.
Final decisions will be made after the IMF's spring meeting next month. The IMF said the proposed reforms feature simpler and more transparent formulae and some ad hoc quota increases to better represent more dynamic economies.
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econmod
Broker
/ Moderator
Mar 29, 2008, 12:46 PM
Post #1 of 1
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