India loses on China issue
P Chidambaram's plea to the IMF was that developing nations must be equally represented in its reforms.india Updated: Sep 18, 2006 20:05 IST
Developing nations led by India and Brazil on Sunday virtually lost their campaign to stall the move for enhanced powers to China and three others at the IMF with its Managing Director RD Rato claiming "consensus" on the controversial proposal, a day before the conclusion of voting.
The decisions at the meeting of the International Monetary and Financial Committee of World Bank-IMF showed there was a "consensus" on the increase in voting powers for China, South Korea, Turkey and Mexico, Rato spoke after the meeting.
"Although there are views on both sides about the voting that is taking place, the decision took place at the committee today showed that there is a consensus (on the adhoc increase in quota) ... The communique that is issued at the end of the committee meeting is an unanimous statement," Rato, who addressed a news conference along with the committee chairman and British Chancellor of Exchequer Gordon Brown, said.
Early on Sunday, Finance Minister P Chidambaram had made a strong plea against the 'flawed formula' to restructure voting rights of member countries, saying the world body should instead adopt "comprehensive reforms to move towards adequate, equitable and appropriate representations for the developing countries."
"But all of them expressing their backing to the first ad hoc increase of the various under-represented economies, I think there is a consensus of the measures that are being voted right now."
These reforms, which, have been agreed upon, should also enhance the participation and voice of low income countries in the IMF, Brown said adding "This will be the biggest reform to the governance of the IMF for 60 years".
If the measure goes through on Monday, the four countries including China would have increased voting rights in the IMF governing body to which, India has been a member right from its inception in 1945.
India, Brazil and several other developing countries who are opposing the move have together less than 15 per cent of votes in the IMF governing body whereas 85 per cent votes in the 184 member are required for carrying out the reforms.