Wednesday, May 24, 2017

As the IMF feels its blood sucking power evaporate, Christine Lagarde moves to give BRICS more voting powers

Months after the formation of new financial institutions like the $100 billion BRICS Bank and the China-led Asia Infrastructure Investment Bank, Christine Lagarde, managing director of the International Monetary Fund (IMF), said Friday that the organisation is ready to discuss IMF voting reforms without the United States to give BRICS and emerging countries greater voting power.

As the “rest of the world” moves away from the “international community,” IMF Managing Director, Christine Lagarde is working out Plan B’s to try and hold on to the fund’s global monopoly by offering more voting rights to BRICS nations.

A little too late Christine, as the wheels are now in motion for a new team to take to the pitch…but we are sure your push to be more inclusive towards other countries (including the new big dog in town, China), is noted and will most certainly result in some sex scandal in your future.

Via Russia Insider:

Lagarde said the IMF is disappointed with the US inaction to ratify the governance and quota reforms and will now move forward without Washington.

“The IMF’s membership has been calling on and was expecting the United States to approve the IMF’s 2010 Quota and Governance Reforms by year-end.

Adoption of the reforms remains critical to strengthen the Fund’s credibility, legitimacy, and effectiveness, and to ensure it has sufficient permanent resources to meet its members’needs,” Lagarde said in a statement.

“I have now been informed by the U.S. Administration that the reforms are not included in the budget legislation currently before the U.S. Congress.

I have expressed my disappointment to the U.S authorities and hope that they continue to work toward speedy ratification,” she said.

“As requested by our membership, we will now proceed to discuss alternative options for advancing quota and governance reforms and ensuring that the Fund has adequate resources, starting with an Executive Board meeting in January 2015,” she added.

The IMF reforms will hand more IMF voting powers to BRICS, a long-standing demand of the group and will also reduce the concentration of representative power of Western Europe at the IMF board.

China and other emerging economies, including BRICS, have long protested against their limited voice at global financial platforms, including the World Bank, International Monetary Fund and Asian Development Bank.

The IMF quota reform calls for a 6 per cent shift in quota share to emerging economies. It will lift China, which still has less voting power than the Benelux countries (Belgium, Holland and Luxemburg), to the third largest shareholder. Shares for Russia, India and Brazil will also see hefty rise.

The reforms, however, have been delayed for four years owing to a block by the US Congress as the US retains a veto. IMF chief Lagarde hinted at a “Plan B” in April if the US fails to endorse the reforms by year-end.

Even the IMF is trying to turn it’s back on Washington. Isolation anyone?

References:

http://russia-insider.com/en/2014/12/13/1847

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