IMF meet to push for reforms

SINGAPORE: The International Monetary Fund meets in Singapore next week the first time in Asia since the 1997 financial crisis hit the region, intent on gearing itself to give greater power to emerging economies in hopes of enhancing the legitimacy of the 61-year-old institution.

At the top of the agenda is a two-year plan of reforms, the first of which is to boost the influence of China, South Korea, Mexico and Turkey in the 184-member fund, in recognition of their rising economic might. In undertaking the reforms, the IMF is acknowledging that the Washington-based financial institution’s credibility has been threatened by a power structure skewed towards the United States and Europe, something critics of the IMF have maintained for years.

“If (the IMF) is to retain its legitimacy and maintain its effectiveness, and be a useful vehicle for promoting international cooperation, all of the fund’s members must be confident that they have a fair share in its decision-making and that their voice will be heard,” Rodrigo de Rato, the fund’s MD, said last week. But the proposals have met with doubt from some member nations, which suggests that the reforms might face an internal battle during the September 19-20 annual meeting.