India’s voting rights increase to 2.6 per cent from the current 2.3 per cent, and China’s, to six per cent from 3.8, as per the new division.
Fact Punch
Russia and Brazil are the other two countries that gain from the reforms.
More than six per cent of the quota shares will shift to emerging and developing countries from the U.S. and European countries.
The combined quotas â or the capital countries contribute â doubles to about $659 billion from about $329 billion.
India and Brazil into the list of the top 10 members
The reforms bring India and Brazil into the list of the top 10 members of IMF, along with the U.S, Japan, France, Germany, Italy, the United Kingdom, China and Russia. Canada and Saudi Arabia slip below the top ten in the process.
Declining U.S power
Among the reasons for the delay has been the time it took the U.S Congress to approve the changes. U.S voting share will marginally drop, from 16.7% to 16.5%.
Though the country holds a veto power, Republicans have been agitated over “declining U.S power.” The U.S Senate approved the changes in December 2015, paving the way for the implementation of the reforms.
Background
IMF reforms were agreed upon by its 188 members in 2010, in the aftermath of the global financial meltdown, and its delayed implementation has been a major concern for India.
Former Prime Minister Manmohan Singh and Prime Minister Narendra Modi have raised the issue at international forums repeatedly, seeking more voice for the developing world in the global financial architecture.
Current Affairs: 28th January, 2016 Current Affairs Round up December, 2015.
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