IMF agrees to increase China's voting power
(AP)
Updated: 2006-09-19 11:08
The reform measure was the most important agenda item on IMF's annual
meeting, held in Singapore along with its sister institution, the World Bank,
which lends money to countries to fight poverty. The meetings wind up Wednesday.
When the IMF was founded in 1945, it focused on the needs of the United
States, Europe and Japan. Over time, the importance of emerging economies has
grown. The reforms seek to redress these changes.
"For institutions like the IMF to continue to be relevant they have to change
with the economy," U.S. Treasury Secretary Henry Paulson said before the results
were announced.
The IMF did not say which nations voted against the proposal, but German
Finance Minister Peer Steinbrueck said Argentina, Brazil and some North African
countries opposed it.
In days leading up to the vote, India, Brazil and Argentina had said the
reforms should include all members and be implemented in one step. They also
said they were doubtful that wealthy member nations are willing to see their
voting shares reduced at a later stage.
The reforms are "unjust and counterproductive,"
Brazilian Finance Minister Guido Mantega said Sunday.
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