G-24 calls for stronger voice of developing countries

Ministers of the Intergovernmental Group of Twenty-Four (G-24) called on Friday for stronger voice and representation of developing countries in the international financial institutions.

In a communique after its 74th meeting held before the annual joint meeting of the International Monetary Fund (IMF) and the World Bank, G-24 ministers stressed that the under-representation of developing countries in the IMF and the World Bank continues to undermine the credibility and legitimacy of the Bretton Woods Institutions and hinder the effectiveness and relevance of these institutions.

They noted that the emerging market countries, other developing countries, and economies in transition account for half of global GDP measured in terms of purchasing power parity, hold most of the world's international reserves, and represent a majority of the world's population.

G-24 ministers, therefore, reiterated that a new quota formula is needed to reflect more accurately the relative economic size of developing countries in the world economy, taking into account purchasing power parity and developing countries' greater vulnerability to commodity price fluctuations, volatile capital flows, and other exogenous shocks.

The ministers urged a substantial increase in developing countries' basic votes to at least restore their relative importance to what it was at the inception of the IMF. They also called on the IMF and the World Bank to ensure that developing countries are adequately represented on the staff of the two institutions, both in number and in key positions.

The Intergovernmental Group of Twenty-four on International Monetary Affairs and Development consists of 24 developing countries.

Source: Xinhua