Increase of developing economies quota in IMF can play pivotal role in safeguarding global financial stability: CEA
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Chief Economic Advisor (CEA) V Anantha Nageswaran has said that the increase of developing economies quota in the International Monetary Fund (IMF) can play a pivotal role in safeguarding global financial stability by enhancing the multilateral lending agency's permanent resources. He said the reforms of international financial institutions have to go beyond the World Bank and multilateral development banks (MDBs).
CEA has stated that the executive board of the IMF has proposed to the Board of Governors that a 50 per cent quota increase (should be) allocated to members in proportion to their current quotas. The 16th General Review of Quotas (GRQ) is likely to provide a greater say to developing economies in the International Monetary Fund.
Nageswaran also pointed out that during the G20 summit in Delhi this year, the leaders remained committed to revisiting the adequacy of quotas and continuing the process of IMF's governance reform.
