Russian President Vladimir Putin will step up demands by emerging powers for a bigger say in the leadership of the International Monetary Fund at a G-20 summit that he’s chairing in September.
The BRICS group of emerging economies, comprising Russia, China, Brazil, India and South Africa, and other rising powers need a greater say in how the Washington-based lender operates so the IMF can meet today’s global challenges, Putin said in an interview with state news service RIA Novosti.
“The most important thing is to revise the IMF quotas and voting system,” he said, according to an e-mailed transcript of the interview. “We will apply maximum effort to convince our partners to find compromises and find acceptable solutions at the G-20 summit in St. Petersburg.”
While the BRICS nations pledged $75 billion to bolster the IMF’s capacity to fight Europe’s debt crisis a year ago, Russia said they wanted sufficient voting power to “influence key decisions” in return. The IMF’s executive board agreed in January that gross domestic product should remain the most important variable in calculating the quota shares that determine a nation’s strength within the lender.
Emerging nations have also urged an end to the convention of naming the IMF’s head from Europe and World Bank presidents from the U.S. Christine Lagarde, a former French finance minister, was appointed to the IMF job in 2011 after Frenchman Dominique Strauss-Kahn quit the post.
The IMF was formed after World War II to help stabilize the currencies and economies of member states and lends to countries in financial strife.
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