India to seek more say in IMF, ADB

LONDON, April 4 – With its influence on global economic affairs growing day by day, India is waiting for the earliest opportunity to increase its say in the International Monetary Fund and Asian Development Bank – two key beneficiaries of the USD 1.1 trillion G-20 rescue deal struck here on Thursday, reports PTI. India, which has been pitching for reforming the IMF shareholding structure to reflect the increasing strength of emerging economies, hopes to see its Special Drawing Rights quota in the multilateral institution double to four per cent, Indian sources said.

They are upbeat about such a development in the wake of 20 industrialised and emerging economies pledging to expand the resources of the IMF and ADB and to bring forward the quota review in the IMF. While these institutions are not going to change overnight, reforms cannot be postponed for long given the new economic realities, sources said.

From less than 20 per cent, the combined size of the Indian and Chinese economies have grown to over one-third of the US economy in the last eight years, giving more voice to the two fastest growing economies in the world.

Prime Minister Manmohan Singh said at the end of the Thursday summit that India can consider increasing the contribution to IMF in proportion to its quota though it has not visualised approaching the institution for borrowing in the near future. India is also not unduly worried about, what some analysts say, is the “growing weightage” for China in institutions like the IMF as it feels that China is definitely a stronger and bigger economy than India but both have their “own strengths and weaknesses”.

The official communique issued at the end of the summit recognised the importance of the issue when it said that alongside the significant increase in resources agreed, the G-20 countries were determined to reform and modernise the international financial institutions to ensure they can assist members and shareholders effectively in the new challenges they face.

“We will reform their mandates, scope and governance to reflect the changes in the world economy and the new challenges of globalisation, and that emerging and developing economies, including the poorest, must have greater voice and representation,” it said.

Towards this end, the leaders pledged to implement the package of IMF quota and voice reforms to complete the next review of quotas in the IMF by 2011. ASSAM TRIBUNE