The International Monetary Fund (IMF) board has recommended a landmark overhaul in the voting power of member countries, with emerging economies saying they will settle for less than they wanted, according to The World Bank Press Review.
The proposed changes have won the support of key large emerging economies China, India, South Korea, Mexico and Brazil, which will gain voting power according to a new formula for calculating each country’s so-called quotas, or membership subscriptions.
Under the terms of the proposal, developed countries would have 57.9 percent of the voting rights, compared with the current 59.5 percent, while the emerging and developing countries would see their share rise to 42.1 percent, from 40.5 percent, the nearly 50-page document said.
IMF economists devised a complex formula to arrive at the adjustment.
First the basic voting rights of each 185 member country are tripled, a move that particularly benefits the poor countries.
Then a new quota formula is applied to each country, which reduces the domination of the G7 richest countries, especially the US and Europe.
Kilde: www.worldbank.org
