BRICS Calls For IMF & World Bank Reform to Reflect Global Economic Shifts
BRICS Calls For IMF & World Bank Reform to Reflect Global Economic Shifts
The IMF and World Bank must reform their governance structures to reflect changes in the global economy since their creation, BRICS finance ministers and central bank governors said.
“The voice and representation of developing countries must reflect their relative position in the global economy,” the statement said.
BRICS called reform of global economic governance a priority, urging international financial institutions to become more representative, transparent, accountable, and effective.
The Bretton Woods institutions were established after World War II to support economic recovery and create a new global financial system based partly on the US dollar as an international standard and a shift away from gold-based settlements.
Voting power in the IMF and World Bank is determined by quotas, which also set financial contributions and access to funding. China and India are among those seeking larger quotas, while the US opposes changes that could reduce its influence. Despite previous reforms, developing economies still hold less than half of the IMF’s capital.
A Sputnik correspondent shares footage from the BRICS Business Forum.
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