G20 regrets IMF reforms delay, India says can't wait for long
The G20, said on Sunday that it 'deeply regrets' the delay in IMF quota reforms, and asked the US to make it effective before April, as RBI governor Raghuram Rajan said emerging economies cannot wait long for the reform.business Updated: Feb 24, 2014 08:04 IST
The group of 20 richest countries of the world, known as G20, said on Sunday that it "deeply regrets" the delay in IMF quota reforms, and asked the US to make it effective before April, as India's central bank governor Raghuram Rajan said emerging economies cannot wait for long for the reform.
"We deeply regret that the IMF quota and governance reforms agreed to in 2010 have not yet become effective... we urge the US to (ratify the 2010 reforms) before our next meeting in April," said the communique released after the two-day G20 ministerial meet.
In an interview to Australian Financial Review (AFR) newspaper, governor Rajan said: "There is only so long the world can wait for the US to get its act together."
The IMF quota reforms seek to increase the voting share of emerging economies such as India. The move hit a roadblock with the US Congress failing to agree on a new funding mechanism for the multilateral body.
Emerging countries have been asking for increased voting rights in IMF to reflect their growing share in the world economy. For instance, the quota reform, once implemented, will increase India's voting share from the current 2.44% to 2.75%, and will make it the eighth largest quota holder at the IMF, up from the present 11th position.
Rajan said problems were not confined to quotas alone.
"It's also (about) even-handedness in policy assessment; cajoling all sides to work for better outcomes," he said.