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Describing the IMF's inability to move ahead with quota reforms as the "first visible failure of the G20," India today asked member nations to expeditiously ratify the changes to give emerging nations a greater voice.
"This is perhaps the first visible failure of G20. This has reduced the credibility of G20. This has reduced the credibility of G20 as a premium forum for international economic cooperation and has dented the role of multilateral forum in achieving the agreed reforms," Economic Affairs Secretary Arvind Mayaram said.
It was agreed in December 2010 that the International Monetary Fund (IMF) would implement the 14th General Review on quota reforms by January 2014.
Once implemented, India's share would increase to 2.75% from 2.44% currently and the country would become the eighth-largest quota holder at the IMF, up from the 11th position.
After a meeting of Finance and Central Bank Deputies here, Mayaram said: "We strongly stated that it is unfortunate that despite agreement in G20, implementation of 2010 reforms, which is vital for credibility, legitimacy and effectiveness of the IMF, have not been completed and we have missed the deadline of January 2014."
The meeting preceded the two-day conference of Finance Ministers and Central Bank Governors starting tomorrow, which will be attended by Finance Minister P Chidambaram and Reserve Bank Governor Raghuram Rajan, besides other ministers and central bank chiefs of the G20, a club of rich and developing nations.
Quota reforms at the IMF have hit a roadblock because US lawmakers failed to agree on the new funding mechanism.
