Finance ministers and central bank governors from Brazil, Russia, India and China (BRIC) have demanded a substantial shift of quotas and shares in the international financial institutions in favour of emerging economies and developing countries.
"We propose the setting of a target for that shift of the order of 7.0 per cent in the IMF and 6.0 per cent in the World Bank group so as to reach an equitable distribution of voting power between advanced and developing countries. This would lead the overall share of emerging market and developing countries in the IMF and World Bank to correspond roughly to their share in world GDP," a joint communique by the BRIC nations said.
"The reform of international financial institutions is crucial to ensuring a stable and balanced global economy. For the IMF and the World Bank Group, the main governance problem, which severely undermines their legitimacy, is the unfair distribution of quotas, shares and voting power," the communiqué noted.
The four countries stressed the need for an open and merit-based selection of IMF and World Bank management.
"The next managing director of the IMF and the next president of the World Bank should be elected in such a manner, irrespective of nationality or any geographical preference. We also support a revision in the composition of the executive boards of the IMF and the World Bank, of the IMFC and of the Development Committee to allow for a more adequate representation of the emerging markets and developing countries," it said.
"The global economy is beginning to improve and that the worst of the crisis may be behind us. In contrast to other junctures, emerging market economies have shown resilience and helped the world economy absorb the impact of the deterioration of trade, credit flows and demand," the release noted.
However, it said, despite these positive signs, it is too early to declare the end of the crisis.