Move For Voting Rights To Reflect World Prices Shift Would Raise Relative Size Of Poorer Countries in IMF
Britain and France are opposing plans to give leading developing countries more power at the International Monetary Fund (IMF) amid accusations that they are seeking to protect their privileged status at the Washington-based institution.
Despite publicly supporting the need to make the IMF more representative of the new global economy, sources said London and Paris were strongly opposing a blueprint for reform.
Under plans backed by the US, either Britain or France could be replaced by China as one of the five most powerful countries at the fund and the influence they have wielded for more than 60 years would be diluted (udvandet).
Ranjit Banerjee, Indias policy adviser at the IMF, said Britain and France had discovered they had the most to lose by the plan to apportion voting rights on the basis of adjusted GDP.
He said Britain and France had voiced objections to using purchasing power parities (PPPs) to assess the size of economies at two recent meetings – one in Washington and one in London – and had persuaded other European countries to support the blocking strategy.
The UK and France are proposing that the pecking order (hakkeordenen) at the fund remain unchanged and that reform be phased in slowly. Banerjee said the leading developing countries were prepared to compromise provided Europe accept a “modicum of PPP” in the new voting formula.
Rodrigo de Rato, the IMFs managing director, hoped there would be consensus on the way forward by the time of the funds annual meeting in October.
Kilde: www.worldbank.org
