BRICS resents delay in implementation of quota reforms

The Dollar Business Bureau A G20 release said that the emerging economies have expressed disappointment over the delay in the implementation in IMF quota reforms proposed by them. BRICS (Brazil, Russia, India, China and South Africa) representing Emerging counties, like India, China, Brazil, Russia and South Africa has been asking for increased voting rights in IMF, which would reflect their growing share in the world economy. The body has also asked the United States to ratify the 2010 reforms as soon as possible. Quota reform, if implemented, will increase India's voting share from current 2.44 per cent to 2.75 per cent, following which the country will become the eighth largest quota holder at the IMF, up from 11th position. The communication issued at the end of the two-day meeting of the G20 Finance Ministers and Central Bank Governors also mentioned about the sharp decline in oil prices and said that the fall will boost global growth and help some countries reassess their fiscal policies. The G20 release also said that the member countries have agreed to co-operate to manage spill overs arising out of the domestic policies, improve business environment to promote growth and strengthen transparency to prevent cross-border tax evasion. Jayant Sinha, Minister of State for Finance and Raghuram Rajan, RBI Governor represented India at the meeting.    

This article was published on February 11, 2015.