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US isolated, BRICS to get greater voting power at IMF
December 13, 2014, 4:31 am

President of Brazil Dilma Rousseff at the BRICS Summit in Brazil where the five countries launched a $100 billion new development bank in July 2014 [PPIO]

President of Brazil Dilma Rousseff at the BRICS Summit in Brazil where the five countries launched a $100 billion new development bank in July 2014 [PPIO]

Months after the formation of new financial institutions like the $100 billion BRICS Bank and the China-led Asia Infrastructure Investment Bank, Christine Lagarde, managing director of the International Monetary Fund (IMF), said Friday that the organization is ready to discuss IMF voting reforms without the United States to give BRICS and emerging countries greater voting power.

Lagarde said the IMF is disappointed with the US inaction to ratify the governance and quota reforms and will now move forward without Washington.

“The IMF’s membership has been calling on and was expecting the United States to approve the IMF’s 2010 Quota and Governance Reforms by year-end. Adoption of the reforms remains critical to strengthen the Fund’s credibility, legitimacy, and effectiveness, and to ensure it has sufficient permanent resources to meet its members’needs,” Lagarde said in a statement.

“I have now been informed by the U.S. Administration that the reforms are not included in the budget legislation currently before the U.S. Congress. I have expressed my disappointment to the U.S authorities and hope that they continue to work toward speedy ratification,” she said.

“As requested by our membership, we will now proceed to discuss alternative options for advancing quota and governance reforms and ensuring that the Fund has adequate resources, starting with an Executive Board meeting in January 2015,” she added.

Earlier in September this year, in her opening address at the United Nations General Assembly, Brazilian President Dilma Rousseff warned that international financial institutions are in danger of losing legitimacy if developing countries like BRICS are not given proper representation.

“It is also imperative to eliminate the disparity between the growing importance of developing countries in the global economy and their insufficient representation and participation in the decision-making processes of international financial institutions, such as the Monetary Fund and the World Bank. The delay in the expansion of voting rights of developing countries in these institutions is unacceptable,” Rousseff said.

“These institutions are in danger of losing legitimacy and efficiency,” she added.

The IMF reforms will hand more IMF voting powers to BRICS, a long-standing demand of the group and will also reduce the concentration of representative power of Western Europe at the IMF board.

China and other emerging economies, including BRICS, have long protested against their limited voice at global financial platforms, including the World Bank, International Monetary Fund and Asian Development Bank.

The IMF quota reform calls for a 6 per cent shift in quota share to emerging economies. It will lift China, which still has less voting power than the Benelux countries ( Belgium, Holland and Luxemburg), to the third largest shareholder. Shares for Russia, India and Brazil will also see hefty rise.

The reforms, however, have been delayed for four years owing to a block by the US Congress as the US retains a veto. IMF chief Lagarde hinted at a “Plan B” in April if the US fails to endorse the reforms by year-end.

 

 TBP and Agencies

16 Responses to US isolated, BRICS to get greater voting power at IMF

  1. Victor Reply

    December 13, 2014 at 12:40 pm

    I think everyone knows the IMF is grasping at straws. With the Anglo/American empire crumbling, why in the world would the creditor nations pump $$$ into a dying institution? The only reason I could think of is transitional purposes. Getting into a spider webbed Western mess isn’t exactly prudent.

  2. Rajah Reply

    December 13, 2014 at 1:15 pm

    This is a cheap ploy by the bankrupt west. A play of good cop bad cop with a patronizing and concessionary approach. Let them keep their ponzi club/ bank. Let the BRICS continue on their own unique path without potentially contanimating themselves with these corrupt has been ” banks”

  3. PatFields Reply

    December 14, 2014 at 4:39 am

    Every government on earth steals the Labor of their countrymen with infinitely printable, depreciating banknote stamps … ‘BRIC’ governments included. So, what genuine improvement is even remotely possible with that excuse for a ‘monetary’ scheme being left in place? None, it’s obvious.

    When governments, banks ans monopoly-industrialists are made to reward people’s Labor with Honest Money (copper, silver and gold), having intrinsic, rational value which naturally maintains worth over very long periods of time, so their savings isn’t secreted away by nefarious ‘leaders’, then progress toward happiness will be truly achieved.

  4. bhanu Reply

    December 14, 2014 at 1:05 pm

    countries should be given share of influence according to their economies at gdp or ppp , as india and other countries are within 5 biggest economies, their share should be higher

  5. Kawehi Kanui Reply

    December 15, 2014 at 12:18 am

    It is about time the west is taught a valuable lesson….follow the laws of the land and do not make up stuff that will hurt the world…Hawaii is an illegal occupied territory by the US military and we want the occupation to end, check out our educational website for the facts and documented evidences…then the world should decide what is wrong and what is correct…Laws are made to keep order and fairness on all levels of business and politics.

  6. Mick McNulty Reply

    December 15, 2014 at 10:19 am

    When the rest of the world has the power to turn cruel sanctions back on America, then we’re getting somewhere…

    • cos bull Reply

      December 18, 2014 at 7:51 pm

      I agree with you 100%.
      We are living in interesting times and you know the saying….

      ” be nice to people on the way up because you may well meet the same people on the way down”

      I hope we live to see the humbling and humiliation of the USA

  7. anonymous Reply

    December 15, 2014 at 10:45 am

    In my opinion this is just another way from the Rothschilds to make the biggest transfer of money happening. The saying “Follow the money” implies that Rothschild/ Zionists have invested largely in Brasil the last decades. China is a Zionist country (Communism/ Facism are invented by the Zionists) which means BRICS is just a “counterweight” for the IMF.
    The Rothschild’s/ Zionists have done this over and over again. (Napoleon, Lenin, Hitler, Mao) Support both camps and let one drop (It’s a win-win situation for them) and ALWAYS with profit beyond imagination 😉

    • Realist Reply

      December 27, 2014 at 11:30 am

      Your comment is sufficient to prove that idiots are the real danger to mankind!

  8. RockyRacoon Reply

    December 16, 2014 at 4:23 am

    Or it could be Europe’s way of avoiding WW3. I am thinking about Hollande’s visit to Russia and what he was giving Putin a head’s up about.

  9. Evangelical Reply

    December 17, 2014 at 12:13 am

    The US/west isn’t bankrupt it is a dangerous predator that uses debt as a weapon it is in no way unable to finance its debt.

  10. Denis Muller Reply

    December 19, 2014 at 7:54 pm

    To end dollar dominations BRICS should go back to gold convertibilty for their monies now…

  11. james Reply

    December 25, 2014 at 11:49 am

    All the governments are interested in increasing their power at the expense of the people. Slave labor is now moving in the front. China will play the humble role to they get their people in the position of total control. Notice in Africa they build using their own people and fail to educate the people or enable them to help themselves. In America they are doing the same thing. They forbid free religion which will be their fall.

    • james Reply

      December 25, 2014 at 11:57 am

      The only hope for this world is the return of Jesus Christ

  12. Steve Hayden Reply

    January 5, 2015 at 5:19 am

    An old book says that the day will come when a bag of gold will buy a loaf of bread, which means essentially two things at the same time; food will become untouchable for the poor and an ounce of gold will not be worth a slice of bread. Get out of debt, punch a few more holes in your belt, and buckle up. If you do not believe in a Creator, you only have a little time left on this rock with hope in your grey matter. Frankly I would not waste any more time on another novel; though I have never read one anyway.

  13. O2infosystems Reply

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