BRICS countries voice concern over pace of IMF reforms
Baku, March 29 (AZERTAC). BRICS countries, which comprise the emerging economic powerhouses of Brazil, Russia, India, China and South Africa, on Thursday voiced concern about the slow pace of reforms within the International Monetary Fund (IMF) in a draft summit declaration.
"We are, however, concerned at the slow pace of quota and governance reforms in the IMF. We see an urgent need to implement, as agreed, the 2010 Governance and Quota Reform before the 2012 IMF/World Bank Annual Meeting, as well as the comprehensive review of the quota formula to better reflect economic weights and enhance the voice and representation of emerging market and developing countries by January 2013, followed by the completion of the next general quota review by January 2014," the BRICS said in a joint declaration after their meeting.
"This dynamic process of reform is necessary to ensure the legitimacy and effectiveness of the Fund. We stress that the ongoing effort to increase the lending capacity of the IMF will only be successful if there is confidence that the entire membership of the institution is truly committed to implement the 2010 Reform faithfully," they added.
Reiterating their support for measures to protect the voice and representation of the IMF's poorest members, they said: " We will work with the international community to ensure that sufficient resources can be mobilized to the IMF in a timely manner as the Fund continues its transition to improve governance and legitimacy."
"We call upon the IMF to make its surveillance framework more integrated and even-handed, noting that IMF proposals for a new integrated decision on surveillance would be considered before the IMF Spring Meeting," the joint declaration added.
Welcoming candidatures from developing world for the position of the President of the World Bank, the joint declaration said: “We reiterate that the Heads of IMF and World Bank be selected through an open and merit-based process. Furthermore, the new World Bank leadership must commit to transform the bank into a multilateral institution that truly reflects the vision of all its members, including the governance structure that reflects current economic and political reality."
"Moreover, the nature of the bank must shift from an institution that essentially mediates North-South cooperation to an institution that promotes equal partnership with all countries as a way to deal with development issues and to overcome an outdated donor- recipient dichotomy," they added.
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