BRICS call for speedier IMF quota reforms

NEW DELHI: Irked by slow pace of reforms of International Monetary Fund (IMF), BRICS leaders today called upon the developed world to expedite the process of giving greater voice and representation to poor countries in the multilateral lending agency.

"We are concerned at the slow pace of quota and governance reforms in the IMF.... This dynamic process of reform is necessary to ensure the legitimacy and effectiveness of the Fund," said the joint declaration after the meeting of the BRICS leaders here.

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"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," the declaration said.

Last week, IMF managing Director Christine Lagarde had said that the multilateral agency is keen to implement quota reforms which will give more voting rights to the under- represented nations. India has a voting share of 2.34 per cent at the IMF.

In December 2010, IMF's Board of Governors had approved a package of quota reforms, including the shift of over 6 per cent of quota shares from over-represented to under- represented member nations

The five BRICS nations collectively account for nearly half the world's population and a fifth of the total economic output.

"We call for a more representative international financial architecture, with an increase in the representation of developing countries and the establishment of a just international monetary system that can serve the interests of all countries and support the development of emerging and developing economies," the declaration