Rise in vote share of emerging nations in IMF compromise: PM

Lalit K Jha

Pittsburgh, Sep 26(PTI) Describing the decision of the
G-20 leaders to raise voting share of emerging nations in the
IMF to 5 per cent as a "compromise", Prime Minister of India
Manmohan Singh said the BRIC nations, including India, were
demanding 7 per cent but agreed to a lower hike.

"It is a compromise figure... The demand was seven per
cent, we got five per cent," Singh told a news conference
at the conclusion of the G-20 Summit during which it was
agreed to raise the quota of dynamic emerging economies by at
least 5 per cent.

"We now have to address the issue of the Fund Quota
increase by early 2011. We have agreed to shift five per cent
to countries that are under-represented," Singh said.

The BRIC (Brazil, Russia, India and China) countries and
the developing nations had been suggesting seven per cent
rebalancing of the quota share. "In ...(that) case the
developing countries would have (got) more than 50 per cent,"
the Prime Minister said.

With the G-20 leaders agreeing to only 5 per cent
increase, the quota for developing countries would go up to 49
per cent from 44 per cent currently.

Agreeing to five per cent increase in quota for emerging
nations, the Leaders' Statement issued at the close of the
Summit said, "the distribution of quotas should reflect the
relative weights of its members in the world economy". MORE
PTI