Laments reform drag at IMF

After committing US $ 10 billion in IMF , Prime Minister Manmohan Singh has lamented on the slow pace of reforms at the IMF, which robs India of its growing economic weightage in the economic high table.

“Progress in quota reforms is proceeding more slowly than raising resources,” Singh said in a fresh statement at the second plenary session of the G20 leaders here.

The IMF reforms aim at increasing the voting power of emerging economies including India, which insists on a GDP-based approach to identify important economies with greater say in the world affairs. But the process has not gathered sufficient momentum in the last two years.

“There are practical reasons why the quota reform agreed in 2010 will not be completed by the end of 2012, but it must be done expeditiously thereafter. It is also important that the quota review schedule for January 2013 is completed in time,” Singh said.

Reiterating India`s stand on the importance of GDP in quota determination, the Prime Minister emphasised on recognising the predominant role of GDP on purchase power parity basis in the formula without going into other variables.

As negotiators from world´s top economies continue to negotiate the draft of final G20 statement, Singh stressed on the need to move towards a banking union in Europe to ensure financial stability.

He also hoped that restructuring of banking in the Europe would not lead to drying up of resources for developing countries. “Prudential rules adopted in banking regulation do not discriminate against lending to developing countries,” he said.

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