LDALL SUMMIT 2

The document said the G-20 leaders were committed to a
shift in the IMF quota share to dynamic emerging markets and
developing countries of at least five per cent from over-
represented countries to under-represented countries using the
current quota formula as the basis to work from.

"Today we have delivered on our promise to contribute
over USD 500 billion to a renewed and expanded IMF New
Arrangements to Borrow (NAB)," the statement said.

Analysts said that the IMF quota shift reflects a
recognition by the US and Europe of a new global reality
in which emerging economies play a bigger role in the
aftermath of the crisis which has hurt the advanced
economies more than the market economies like India and China.

Prime Minister of India Manmohan Singh, who led the
Indian delegation, said the shift in voting rights in the IMF
could lead to a 50:50 power equation in the international
financial architecture if not more in favour of the emerging
and developing countries, a stand that has been voiced by
India for long.

He said the demand was for seven per cent shift in
voting rights but what was agreed was five per cent. "It was a
compromise," he explained.

In the World Bank, the Summit stressed the importance
of adopting a dynamic formula which primarily reflects
countries' evolving economic weight and the World Bank's
development mission and that generates an increase of at least
3 per cent of voting power for developing and transition
countries to the benefit of under-represented countries.
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