Senior Resident Representative Daisuke Kotegawa of the IMF (International Monetary Fund) in Japan, expressed in Beijing on October 17 that IMF was implementing a new round of reform in which the proportion of China's voting power in IMF would be second only to U.S.
Kotegawa also believes that although signs the world's economy is turning around are emerging and Australia's central bank has announced an interest rate hike, it was still too early to discuss an exit mechanism for economic stimulus policies of different countries in the world. Maintaining a good momentum of development is the key issue, and it is not necessary to stress inflation in the short term.
At present, the voting power of U.S. in IMF accounts for 17.4 percent, however, China's voting power only takes up by 3.72 percent. After the new round of reform, the voting power of China will increase significantly. Daisuke Kotegawa thinks that China will overtake Japan in IMF voting power. This would mark a raise in China’s ranking from sixth to second place.
Recently, Dominique Strauss-Kahn, president of IMF, also stated that it was the right time to adjust the proportion of voting power for member states. However, China should see the biggest adjustment of position within the IMF.
Related:
Arab states ‘vital to recovery’
http://www.businessday.co.za/articles/Content.aspx?id=84325
| Published: 2009/10/19 06:24:29 AM |
MUSCAT — International Monetary Fund (IMF) MD Dominique Strauss-Kahn said on Saturday the Gulf Arab states were underestimated by the global economy and their role should be re-evaluated.
Policy makers from the Group of 20 (G-20) advanced and emerging economies agreed to give China and other “underrepresented” countries more of a say at the IMF through a transfer of at least five percentage points of quotas, which determine voting shares and access to IMF loans. The G-20 will also replace the G-7 as the global forum for economic issues, giving Saudi Arabia, the Arab world’s largest economy, more say.
The Gulf Co-operation Council’s role “is very important in the recovery”, Strauss-Kahn said. “As the recovery will go on there is a risk of an increase in oil prices so the way the (council) will manage this question has a lot to do with the risk of a double-dip or the real recovery of the global economy.”
