RIC nations for bigger voting power in global economic bodies


“They stressed that the future of global economic governance should feature in balanced representation, equality and result-orientedness, and ensure the voice and representation of emerging market and developing countries,” a joint communique said here at the end of the 9th trilateral meeting of the foreign ministers of India, China and Russia.
The three countries also made a pitch for holding future G20 summits  in  developed countries and in emerging market and developing countries “by rotation based on the principle of transparency and equity”.
Issues relating to the global economic crisis figured prominently in discussions between India's External Affairs Minister S.M. Krishna and his counterparts, Yang Jiechi of China and Sergei Lavrov of Russia.
The ministers emphasised that one of the ultimate goals of governance structure reform for international financial institutions is equitable distribution of voting power between developed countries and developing ones, said the joint declaration.
Alluding to key decisions taken at the third G20 summit in Pittsburgh, US, last month, the three foreign ministers called for “speedy shift” in quota share in International Monetary Fund (IMF) of at least five percent to emerging market and developing countries and a significant increase of at least three percent of voting power in the World Bank for developing and transition countries.

Krishna, Yang and Lavrov stressed that future global economic governance should feature in "balanced representation, equality and result-orientedness and ensure the voice and representation of emerging market and developing countries."
The three countries advocated that future G-20 Summits should be held by rotation in developed countries and developing countries based on the principle of transparency and equity.
"The Ministers emphasised that one of the ultimate goals of governance structure reform for international financial institutions is equitable distribution of voting power between developed countries and developing ones," the communique said.
They also called for early implementation of the quantified targets on the governance structure reform of the international financial institutions endorsed by the G-20 Pittsburg Summit last month.
The three countries also pressed for speedy shift in IMF quota share of at least five per cent to emerging market and developing countries and an increase of at least three per cent of voting power in the World Bank for developing and transition countries, while avoiding erosion in voting shares of developing countries.
Yang said the global economic situation continues to be fragile and that India, China and Russia, all major emerging economies, should collaborate to ensure that the international financial system is "more just and equitable".
The common stance of the three major emerging economies -- that together comprise 20 percent of the total global landmass and represent 39 percent of the global population -- is expected to push the ongoing process of recasting the international economic order to accommodate developing countries in economic governance.  
The trilateral meeting, which also discussed a host of regional and international issues like the UN reforms, terrorism and climate change, comes ahead of the meeting of finance ministers and central bank governors from the G20 group Nov 6-7 in St. Andrews, Scotland.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry