ID :
31289
Thu, 11/20/2008 - 12:37
Auther :
Shortlink :
https://www.oananews.org//node/31289
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FINANCE MINISTER: IMF NO LONGER REFLECTS CONSTELLATION OF WORLD ECONOMIC PLAYERS
Jakarta, Nov. 20 (ANTARA) - Finance Minister Sri Mulyani Indrawati has considered that the International Monetary Fund (IMF) and the World Bank have no longer reflected the constellation of the world economy's key players.
"In the G20 (Group of 20) Summit, it was described that the
existing format no longer worked. It means that the Bretton Woods legacy no longer reflects the constellation of the current world's players," Minister Sri Mulyani said here on Wednesday.
She said that the G-20 Forum could become an alternative to the unworkable international institutions.
"If we look at the composition of the G-20, although European countries are rather plenty, emerging countries also begin to be dominant," the minister said.
Meanwhile, in the IMF, the voices of developing countries needed to be heard in on order to be fair.
"So that it will not be dominated by the US and Europe only. In the IMF, the US has a veto right because the US holds 18 percent (of shares in the IMF's capital). When the US says no, then it will not pass," she said.
She also said that the decision making structure between finance ministers and central bank governors needed to be simplified in the IMF.
During his visit to Washington DC for the G-20 Summit recently, President Susilo Bambang Yudhoyono said Indonesia would not seek aid from the IMF to overcome its problems in the current global financial crisis because in the past IMF assistance had proven ineffective.
He said Indonesia had 10 years of experience cooperating with IMF which was later considered inappropriate, so in the face of the present global financial crisis it was better for the country not to have any relations with IMF again.
"In light of our experience with IMF, we have now to be more careful in entering into partnerships. To cooperate with international financial institutions, we should make sure that the measures, approaches, and the ways in which the problems are to be overcome will be right and suited to our national conditions," Yudhoyono said last Sunday (Nov. 16).
"In the G20 (Group of 20) Summit, it was described that the
existing format no longer worked. It means that the Bretton Woods legacy no longer reflects the constellation of the current world's players," Minister Sri Mulyani said here on Wednesday.
She said that the G-20 Forum could become an alternative to the unworkable international institutions.
"If we look at the composition of the G-20, although European countries are rather plenty, emerging countries also begin to be dominant," the minister said.
Meanwhile, in the IMF, the voices of developing countries needed to be heard in on order to be fair.
"So that it will not be dominated by the US and Europe only. In the IMF, the US has a veto right because the US holds 18 percent (of shares in the IMF's capital). When the US says no, then it will not pass," she said.
She also said that the decision making structure between finance ministers and central bank governors needed to be simplified in the IMF.
During his visit to Washington DC for the G-20 Summit recently, President Susilo Bambang Yudhoyono said Indonesia would not seek aid from the IMF to overcome its problems in the current global financial crisis because in the past IMF assistance had proven ineffective.
He said Indonesia had 10 years of experience cooperating with IMF which was later considered inappropriate, so in the face of the present global financial crisis it was better for the country not to have any relations with IMF again.
"In light of our experience with IMF, we have now to be more careful in entering into partnerships. To cooperate with international financial institutions, we should make sure that the measures, approaches, and the ways in which the problems are to be overcome will be right and suited to our national conditions," Yudhoyono said last Sunday (Nov. 16).
