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G77 Reiterates Call for IMF Reforms & Equitable Voting Power

UNITED NATIONS, Dec 4 2016 - The Group of 77 joined by China have reiterated their call for the full implementation of the 2010 International Monetary Fund (IMF) Quota and Governance Reforms.

Speaking on behalf of the Group of 77, the Thai delegate told the UN’s Economic and Financial Committee that a new quota formula was needed that further shifted quota shares to dynamic emerging market and developing countries while protecting the quota share of the poorest countries.

The delegate said it was also important to achieve equitable voting power between developing and transition countries and developed nations– while protecting the smallest poor countries.

Unlike the UN General Assembly, where each country has one vote, decision making at the IMF was designed to reflect the relative positions of its member countries in the global economy, according to the IMF.

The Group of 77 has called for a reform of the existing system.

Meanwhile, surveying the state of the world economy, the Thai delegate said the world continued to face challenges which undermine the implementation of the UN’s 2030 development agenda.

These challenges include weakness in global recovery, sharp decline of commodity exports, financial market volatility, high unemployment rates and rising private and public debt burdens.

The Thai delegate also pointed out that financing for development (FfD) was an integral part in supporting and complementing the implementation of the 2030 Agenda.

To that end, she said, North-South cooperation was still the main channel of financing for development. It was important for providers of Official Development Assistance (ODA) to meet their commitments.

She stressed the need to continue to broaden and strengthen the voice and participation of developing countries in international economic decision-making and norm-setting.

Debt had a severe impact, especially on the heavily indebted poor countries. Long-term debt sustainability through coordinated policies with respect to fostering debt financing, debt relief, debt restructuring and sound debt management were most relevant, she declared.

 
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