India for greater say to developing nations in IMF

India pitched for increasing the voting power of emerging economies in the International Monetary Fund by 5-6 per cent, which will give developing countries a greater say in how the 186-nation Fund is run.

"Quota reforms in IMF is one of our basic objectives... we want at least 5 to 6 per cent quota should be increased in IMF and emerging market economies of the world should have their shares," Mukherjee told PTI here on Wednesday.

In April this year, India wrested greater say in the affairs of World Bank when member nations approved a shift in voting rights. This saw India's voting rights increase to 2.91 per cent from 2.77 per cent - making it the seventh largest member.

"This is one of the subjects that will emerge in the course of my discussions with the authorities of the World Bank and IMF," he added.

Mukherjee will raise the matter at the annual meeting of the International Monetary Fund and the World Bank, which kicks off in Washington on Thursday.

Once their voting powers are increased, developing nations would be able to influence how and where the funds are deployed, such as fighting poverty and fostering development.

The Brussels Declaration on more effective global economic governance, adopted at the conclusion of the eighth Asia-Europe Meeting, stated that IMF quota shares should be shifted to dynamic emerging markets and developing countries by at least five per cent from over-represented to under-represented countries.

Like the United Nations' Security Council, which is criticised for reflecting the political power structure that existed after the Second World War, the International Monetary Fund is rebuked for reflecting the economic dynamics of the same era.

He pointed out that the developing countries were making a substantial contribution in the world's output and GDP and "according to us the quota and governance structures of IMF does not reflect the ground realities."

Underling the urgent need for reform, Mukherjee said that global economic realities "should get reflected in the share in the quota and governance architecture of the world's financial institutions."

Mukherjee also plans to raise this issue again at the meeting of finance ministers from the G20 countries in South Korea, later this week.