Finance Ministers of the BRIC nations (Brazil, Russia, India and China) on Saturday discussed the challenges facing the World Bank and the International Monetary Fund (IMF) in the wake of the global financial crisis, and arrived at a consensus on several key issues pertaining to a shift in parity and quota shares to benefit the dynamic emerging markets and developing countries (EMDCs).
According to an official statement here, the BRIC nations meeting — convened by Finance Minister Pranab Mukherjee in the backdrop of the annual meetings of the World Bank and the IMF in Istanbul — was attended by Brazilian Finance Minister Guido Mantega, Russian Finance Minister Aleksey Kudrin, and China’s Vice Minister of Finance Yong Li.
Finance Ministers and Governors of the Central banks of various countries are in the Turkish city to participate in the annual meetings of the two institutions.
The BRIC ministers took up several issues facing the institutions to arrive at common positions on many fronts.
On matters pertaining to the IMF, the ministers agreed to aim for achieving a significant seven per cent shift in Quota Shares in favour of the EMDCs, and also discussed the ‘New Arrangement to Borrow’ (NAB).
As for the World Bank, the BRIC nations discussed ways and means of enhancing the voice and participation of developing countries and agreed to aim for a shift of six per cent for parity.
They also supported an increase in capital for both the World Bank and its private lending arm, the International Finance Corporation (IFC).
The statement noted that such meetings of BRIC nations at the levels of Finance Ministers and Deputies/Executive Directors have become a regular feature, as they facilitate the sharing of views and adoption of common positions.
Just as he did during the BRIC Finance Ministers’ meeting in London prior to the G-20 Summit in April this year, United States Treasury Secretary Timothy Geithner dropped in at this meeting at Istanbul.
While Mr. Geithner acknowledged their constructive role in finding solutions to the current global problems, the Finance Ministers conveyed to him their common positions on governance issues of the IMF and the World Bank.
Mr. Mukherjee was assisted, among others, by Finance Secretary Ashok Chawla, Chief Economic Adviser Arvind Virmani, Executive Director with IMF Adarsh Kishore, and Executive Director with World Bank Pulok Chatterjee.