China urges IMF to give more power to emerging markets

Wed Jan 15, 2014 8:02am EST
 
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BEIJING (Reuters) - China called on the IMF on Wednesday to stick to a commitment to give emerging markets more power at the world body after U.S. lawmakers set back historic reforms that would give developing countries a greater say.

The remarks by Chinese Foreign Ministry spokesman Hong Lei were an indirect criticism of the United States, the biggest and most powerful IMF member, where lawmakers failed on Monday to agree on key funding measures, though Hong did not mention the United States by name.

The proposed $1 trillion spending bill for the U.S. federal government did not include funding for the International Monetary Fund.

Congress must sign off on the IMF funding to complete 2010 reforms that would make China the IMF's third-largest member and revamp the IMF board to reduce the dominance of Western Europe.

The changes would also give greater say to nations such as Brazil and India to reflect their growing economic heft.

But the changes have been held up by the lack of approval from the United States.

"The IMF quotas reform is an important decision made by the organization," Hong said at a daily news briefing.

"The relevant organization's members should earnestly implement the decision, and honor and enhance the voice and representation of developing countries within the IMF."

The reform of the voting shares, known as quotas, cannot proceed without the United States, which holds the only controlling share of IMF votes.   Continued...

 
The International Monetary Fund (IMF) logo is seen at the IMF headquarters building during the 2013 Spring Meeting of the International Monetary Fund and World Bank in Washington, April 18, 2013. REUTERS/Yuri Gripas