The following is the text of Finance Ministers of India, Brazil, Argentina and Egypt at the IMF meeting held in Singapore.
“Our countries have been actively and constructively engaged for several years now in the dialogue with other partner countries with a view to build a broad consensus around a package of reforms in the quota and representation system of the IMF."
"The main goal of this endeavour was to bring representation in the Fund more in line with the evolution of the global economy, while at the same time increasing the share of developing countries as a group in the quotas and voting power."
"We and several other important emerging markets and developing countries representing a substantial share of the global economy and population are opposed to the Resolution sent by the Managing Director to the Governors on quotas and votes. We reiterate that we support the increase in quota for the four countries who are the present beneficiaries of the ad hoc quota increase."
"However, the present quota calculation formula is opaque and flawed. We believe that fundamental reforms are possible only if the contours of a final outcome are defined a priori followed by genuine consultations amongst nations as equal partners."
"The picture that emerges at present points to a second stage that is by no means guaranteed to happen or, even if it happens, may not advance the Fund's legitimacy."
"In the event, the disturbing picture that emerges is that some developing countries will be given increases by reducing the shares of some other equally deserving developing countries. This position is clearly unacceptable as it further erodes the credibility and legitimacy of the IMF."
"We, therefore, believe that the current process should be kept in abeyance and a genuine attempt be made to work out a simple and transparent formula that is truly reflective of the economic standing of countries while also protecting the position of low income countries.”
Press Information Bureau Government of India
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