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India Calls For An Urgent Revision To IMF Quota To Meet Ground Issues

AASTHA SINGAL | 0
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| October 16 , 2017 , 11:09 IST

The quota of International Monetary Fund is long overdue for revision and India have demanded alternation while keeping the dynamic market in mind.

While addressing the annual meetings of the IMF and the World Bank in Washington, Indian finance minister Arun Jaitley expressed the desire to have that accomplished during 15th General Review of Quotas.

"There is an urgent case for revising quota shares in favour of dynamic emerging market countries in line with global economic realities to maintain fairness in the governance structure of the Fund," Jaitley said to the world financial leaders.

"We should make every effort to complete the 15th Review by the agreed timeline of 2019 Annual Meetings," he declared.

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The finance minister also talked about the risks to global financial and economic stability on IMF’s operations and advocated that the strong quota-based institution should work on their sources in order to meet these demands.

Jaitley also envisages to see a conclusion of the 2015 shareholding review by Annual Meetings 2017 for the World Bank Group.

He stated, "While we note that we failed to deliver it, given the progress that has been made so far, we strongly urge all to commit to deliver an equitable conclusion of this process for both the IBRD and IFC by the Spring Meetings 2018."

The minister alerted that any further delay in the revision of policies could risk the development of client countries along with the existence of Bank and IFC in MDBs.

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"We look for an expeditious decision on capital enhancement through both selective capital increase (SCI) and general capital increase (GCI) for both the IBRD and IFC, by Spring Meetings 2018," he added.

Jaitley claimed that India has been performing strongly in the field of credible macroeconomic adjustments and structural reforms and assured the world financial leaders to keep the performance going.

The minister has expressed his worry over the perseverance of low productivity and potential growth in advanced economies (AEs) but believes that the growth in emerging markets and developing economies (EMDEs) will help the situations.

Jaitley said, "The risks of growing populism and consequential loss in trade volumes will affect global recovery adversely - and it is incumbent upon all of us to foster cooperative multilateral efforts to boost fair trade practices."

Jaitley also observed the growth in the US and the Euro area which is expected to improve in 2017 compared to 2016. The minister also wished for the continuing recovery in Japan and expressed the vision of it doing better in 2017 due to stronger domestic and external demand.

"As for the Indian economy, the sound fundamentals and number of progressive policy initiatives taken in the last few months will provide the basis for a strong prognosis and convergence with growth potential," he concluded.