Geithner: give emerging markets more IMF powerEmerging-market economies should be given an increased say in global financial institutions at the cost of rich countries, Treasury Secretary Timothy Geithner said on Saturday.
In a speech to the International Monetary Fund, Geithner repeated a call for emerging market countries to adopt market-oriented currency exchange rates and said the U.S. would back developing counties in a bid for more IMF power.
He said what was on the table from the developed world in talks on the issue did not go far enough.
"We support a reduction in the size of the Board that preserves the existing number of emerging market and developing country chairs, including a move to all-elected chairs," Geithner said.
A current effort to rejig voting quotas within the IMF "falls short" of what is needed to give an adequate say to developing markets.
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25 April 2010
U.S. urges more voice for developing countries in IMF
Washington. U.S. Treasury Secretary Timothy Geithner on Saturday called for reforms of the International Monetary Fund (IMF) that would give more voice to emerging markets and developing countries, Xinhua News Agency informed.
In a speech at the International Monetary and Financial Committee (IMFC) meeting, Geithner said the United States is committed to reform the IMF's governance structure to "reflect global economic realities."
"The IMFC has provided clear guidance on the need for a shift in quota share to dynamic emerging markets and developing countries of at least 5 percent, using the existing quota formula as 'a basis to work from,'" he said.
"The goal is to achieve legitimate representation based on countries' economic weight in the world," he said. "The current quota formula, however, falls short of this objective."
In order to make the Executive Board "more representative and effective," the United States supports "a reduction in the size of the Board that preserves the existing number of emerging market and developing country chairs, including a move to all-elected chairs," Geithner said.
FOCUS News Agency
