MercoPress. South Atlantic News Agency
Brazil slams US and Europe for delaying promised reforms in the IMF
Mantega said that the IMF major shareholders are gambling with the Fund’s legitimacy and credibility Brazil’s Finance Minister Guido Mantega slammed the United States and Europe for repeatedly delaying reforms of their dominated shareholding and voting power in the International Monetary Fund (IMF).
In a statement on Friday Mantega accused the two for stalling the reforms, preventing a rebalancing, which could allow emerging economies more say.
“An IMF reform may be at its nadir. Target dates have been missed, delays and procrastination have become routine,“ said Mantega in a statement from his ministry on behalf of the eleven countries he represents.
He continued by saying the two reforms- the approved 2010 rebalancing and capital doubling and a planned, general quota review- have been held up since 2011.
The approved 2010 program has not been imposed since it needs the support of the United States, where Congress keeps on blocking ratification.
The other planned quota review, which was scheduled to be completed by January 2014, has been postponed due to ”resistance to change on the part of overrepresented European countries,“ said Mantega.
”In other words, America is unable and Europe unwilling to follow through with agreed reforms. The institution's major shareholders are gambling, perhaps unwittingly, with the IMF legitimacy and credibility.”
The postponements are stopping emerging economic powers like China, Russia, India and Brazil from getting greater say in IMF affairs through increased quotas.
The finance minister also pointed out that the reforms originated from the 2007-2008 crisis in advanced economies and was set up by the Group of 20 economic powers with the support from emerging countries to increase the IMF resources for intervention and aiding troubled countries.
The majority of the increase has been used in bailouts for Euro-zone countries Ireland, Greece, Portugal and Cyprus.
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Read all commentsThe postponements are stopping emerging economic powers like China, Russia, India and Brazil from getting greater say in IMF affairs through increased quotas.
Apr 20th, 2013 - 12:27 pm 0No kidding.
and
Don't hold your breath
We don't really want the inmates running the asylum now do we?
I don't understand where this guy is coming from. Example: The USA has a quota of 42,122.4 million SDRs, 17.69% of the total, reflecting how much money it makes available. As a result, it has 421,961 votes, 16.75% of the total. By contrast, Brazil has a quota of 4,250.5 million SDRs, 1.79% of the total. It has 43,242 votes or 1.72% of the total. Does he think that Brazil should have more votes without making more money available? A quick look shows that, out of the “top” 21 countries, the USA and European countries make 43.31% of the funds available. and they have 41.92% of the votes. Seems more than fair.
Apr 20th, 2013 - 01:17 pm 03. What they are trying to do is get the USA UK EU to give up shares to split between the BRIC countries.
Apr 20th, 2013 - 02:04 pm 0It isn't going to happen
Thank goodness for the US Congress checking the office of the Prez
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