NEW DELHI, March 12 - Prime Minister Narendra Modi today pitched for further quota reforms at the IMF to reflect global economic realities and give India and other emerging economies a larger say in the working of multilateral bodies.
Modi said the long pending quota revisions agreed in 2010 have finally come into effect but �even now, the IMF quotas do not reflect the global economic realities.�
�Change in quotas is not an issue of increasing the power of certain countries. It is an issue of fairness and legitimacy. The belief that quotas can be changed, is essential for the fairness of the system,� he said, addressing a conference on Advancing Asia, co-hosted by India and the International Monetary Fund (IMF).
For poor nations to respect the legitimacy of such institutions, they must be able to aspire and to hope, he said. �I am, therefore, very happy that the IMF has decided to finalise the next round of quota changes by October 2017.�
The Prime Minister said the quota reforms implemented in January reflects the emerging economies� greater weight in the world economy. �This will give them (emerging economies) more say in collective decisions in the IMF,� he said while lauding IMF Managing Director Christine Lagarde�s role in persuading all members to ratify the decisions taken in 2010.
Hoping that the IMF would be able to build on this success, Modi said, �Reform of global institutions has to be an ongoing process. It must reflect changes in the global economy, and the rising share of emerging economies.�
The IMF in January announced the implementation of its long-pending quota reforms, which will give more voting rights to emerging economies such as India and China in the functioning of the multilateral institution.
India�s quota in the IMF rose to 2.7 per cent from 2.44 per cent and its voting share increased to 2.6 per cent from 2.34 per cent.
For the first time, four emerging market countries of the BRIC bloc � Brazil, China, India, and Russia � will be among the 10 largest members of the IMF.
Other top 10 members include the US, Japan and the four largest European countries � France, Germany, Italy and the UK. � PTI