India wants realignment of voting rights at IMF

16 Apr 2007

Washington: India wants realignment of voting rights at the International Monetary Fund (IMF) to provide greater voice to under-represented countries.

Reserve Bank of India (RBI) deputy governor Rakesh Mohan addressing the World Bank-IMF annual meeting said, "The fundamental (voice and quota) reform has to come by giving greater share to the under-represented countries while that of the over-represented countries would need to come down."

Elaborating on quota and voice reforms, he said IMF needed to adopt a simple, transparent and linear quota formula to meet current global reality. He suggested a new formula, which should take into account Gross Domestic Product (GDP) computed entirely on purchasing power parity (PPP) basis as half-way blending of GDP at market rate with GDP on PPP would not meet the objectives of reforms.

A broader representation of developing countries would enhance the acceptability, ownership and effectiveness of the Fund''s programmes and policies, he said in his address.