WASHINGTON (Thomson Financial) - The International Monetary Fund has pledged to boost the role of developing and poor countries in its decision-making.
The commitments came in a final statement issued after a meeting of the IMF's policy-making committee in Washington.
The committee said reforming the IMF 'should enhance the representation of dynamic economies, many of which are emerging market economies, whose weight and role in the global economy have increased.'
Such countries should see their voting share increased, the committee said, adding that 'the voice and representation' of poor countries would also be strengthened.
It said all elements for an internal reform package, including an increase in the quotas that determine a member's voting rights, should be in place by the time of its next meeting in April 2008.
The committee said that the total quota increase should be of the order of 10 pct, with at least a doubling of basic votes.
Earlier in the day Nigerian Finance Minister Shamsuddeen Usman, speaking on behalf of 19 other African nations, told the committee that Africans were markedly under-represented on the IMF staff roster.
'We regard the current situation, where Africans account for only 5.6 pct of the Fund's staff, relative to a recommended threshold of 8.0 pct, as unacceptable,' he said.
He called for measures to increase African representation at all levels, but in particular in the post of deputy managing director for Africa, to 'be undertaken expeditiously.'
US Treasury Secretary Henry Paulson also urged 'fundamental reform' in the operation of the IMF 'to reflect the realities of the evolving global economy,' namely by adjusting quotas to take account of emerging and poor countries 'and to keep members from drifting away from this critical global institution.'
The IMF's financial resources stem mainly from quota subscriptions, which are assigned to each member according to its relative size in the world economy. A member's quota determines its voting power as well as its access to IMF financing. tf.TFN-Europe_newsdesk@thomson.com ro COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.