Major players? China, India get more say in IMF

WASHINGTON: China and India received long-sought recognition as global economic heavyweights as the International Monetary Fund gave them and other emerging powers a significantly larger role in stabilizing the world economy.

IMF chief Dominique Strauss-Kahn announced planned reforms to the fund’s voting power after a meeting of the organization’s board, declaring that no longer would emerging economies feel that they are “invited to the table, but minor players.” Brazil, China , India and Russia are now “major players,” Strauss-Kahn affirmed at a news conference. He called on these nations to assume greater responsibility in guiding the global economy.

The board’s decision elevates China to No. 3 in voting power above traditional IMF powers such as Germany, Britain and France. A number of smaller European nations and Saudi Arabia lost votes so that “new changes in the global economy will now be reflected in changes in the fund,” according to Strauss-Kahn .

Developing countries have long criticized the voting system of the IMF, which was established after World War II to stave off a reprise of the Great Depression. The US and Japan maintain the two most voting shares, but two European seats on the 24-member executive board will now be reserved for emerging economies.