India elected second vice-chair of G-24 countries

India was elected the second vice-chair at the meeting of G-24 countries in Istanbul on Saturday, while Brazil replaced Syria as the chair. India is now just two steps away from becoming the chair of the Inter-governmental Group of 24 (G-24) nations on international monetary affairs and development.

“Finance minister Pranab Mukherjee was elected unanimously as the second vice-chair. He would automatically become the first vice-chair in 2010-11 and then, in 2011-12, he would be the chair of G-24 countries,” the government said in a media statement.

Till now Syria was the chair, Brazil was the first vice-chair and South Africa was the second vice-chair. In the new order, Brazil is the chair, South Africa is the first vice-chair and India is the second vice-chair. These three countries represent each of the three regions — Africa, Latin America & the Caribbean and Asia — that G-24 comprises.

The group was established in 1971 with an objective to concert the position of developing countries on monetary, development finance issues. Its other member countries are Algeria, Côte d'Ivoire, Egypt, Ethiopia, Gabon, Ghana, Nigeria, Congo, Argentina, Colombia, Guatemala, Mexico, Peru, Trinidad & Tobago, Venezuela, Iran, Lebanon, Pakistan, Philippines and Sri Lanka.

Meanwhile, Mukherjee convened a meeting of the finance ministers of BRIC countries (Brazil, Russia, India and China) at Istanbul on Saturday. The BRIC finance ministers discussed issues facing the World Bank and the International Monetary Fund (IMF) and arrived at common positions on several issues.

"On the IMF side, the ministers discussed the process of achieving a significant shift in quota shares in favour of dynamic emerging markets and developing countries. They agreed to aim for a 7 per cent shift. They also discussed the new arrangement to borrow," the government said in another release.

On the World Bank side, they discussed how to enhance the voice and participation of developing countries in the World Bank and agreed to aim for a shift of 6 per cent for parity. They also discussed the adequacy of capital resources of the bank and supported and an increase in the capital for both the World Bank and the IFC.