IMF close to raising quota of emerging economies by 5 pc

In a move that will give emerging economies a greater say in IMF,the agency has said it is close to increasing quota share of developing countries by at least 5 per cent by January 2011. IMF managing director Dominique Strauss-Kahn Strauss-Kahn at a news conference said the aim is for a shift in quota share to dynamic emerging market and developing countries by least 5 per cent from over-represented to under-represented countries by January 2011. At a news conference,Strauss-Kahn said that he expected IMF members to agree in either days or weeks on needed reform of the institution. “We are still not there,but not far off. Still some divergent views,but I am used to this. I think we are on the right track,” he said.

India has pressed for a revision in quota formula in the IMF based on purchasing power parity. “The quota review should ensure a forward looking realignment of quota shares. The burden of the quota shift to dynamic emerging markets and developing countries have to be borne primarily by advanced economies and I reiterate my call for a shift of 5-6 per cent in quota share from advanced countries to developing countries,” finance minister Pranab Mukherjee had said.