Emerging economies to enhance voice in IMF

10 at the end of meeting of G20 finance ministers and central bank governors, delegates agreed on IMF reform: IMF in 2012 to include the representation of emerging countries, including more than 6% of the share transfer. November 5, IMF Executive Board adopted the share reform program. China's share under the program from the current 3.72% to 6.39%, ranked the United States and Japan. India share rose from 11 No. 8, Russia increased from 10 to 9, Brazil from 14th to No. 10. Meanwhile, European countries in the IMF Executive Board will make the two seats for emerging (37.250,0.18,0.49%) market and representation of developing countries. Kahn said the IMF was established 65 years this is the most important governance reform program, but also in emerging markets and developing countries for the largest share of the transfer program.

"In fact, the share of reforms had little negative impact on the United States," Cao Heping said the United States in the IMF now has a 17.67% voting rights. In accordance with the provisions of IMF, IMF important policy decisions, must be more than 85% of the voting rights vote. In other words, as long as the United States does not agree, IMF can not make any important decisions, the United States-led international monetary system has a veto. In a sense, IMF has not fundamentally change, the future reform needs to be done.

Reform road is still long way to go next since the financial crisis reflect the World Bank and IMF reform, including the road, which is the hard feeling. "In fact, the difficult reform of international financial institutions may be understood in two ways," Cao said peace, first of all from a system point of view, IMF was originally designed to play "World Bank" role: to maintain exchange rate stability among member countries, When Member States balance of payments "fundamental imbalance" when, IMF will adjust the exchange rate parity with their consultations and to provide liquidity assistance and other matters. In practice, central banks have unified behind the different judicial and legislative, IMF no support behind it, a "mean body", the lack of specific decision making and execution. The design of the system might also cause it forces vulnerable to interference.

In addition, the pattern of changes in the global economy, call for a new pattern of international financial and economic governance, and in this transformation among the leaders of a more global perspective of the times required. Cao Heping said that if a country only wants to put their own interests above the interests of the world, they want to "police" become the representatives of public authority, which is self-contradictory and can not win respect. From this perspective, the current including the IMF and the World Bank and other international financial institutions, the choice of the leaders, and focus should also include candidates for emerging economies. A more inclusive international financial institutions, can be more likely to win respect.