Finally, Africa gets another chair in IMF
Asks world bank to implement same
The G24, a group of advanced economies in America, Europe and Asia, has finally given vent to the recommendation for another chair for Africa at the International Monetary Fund (IMF) to grant the continent more voice in decision-making and access to the global multilateral lending institutions.
The group has also asked the World Bank to implement same measures to grant more opportunities to Africa and other less developed members, particularly as it affects access to financing to fast track development.
Africa had only about 3.3 per cent equity holding in the IMF, which qualifies it to only two chairs, with representation at the Board rotating among member countries divided into two distinct blocks.
The situation limits the African continent’s influence and access to credit from the Fund, as decisions at the IMF are carried out essentially by votes.
This cheery development is a response to agitation by the African member states’ for more voice at the Fund, which gave rise to the 2010 IMF Reform programme, the implementation of which had remained on the drawing board until now.
The development is part of the outcome of the G24’s Intergovernmental meeting on international monetary affairs and development at the on-going IMF/ World Bank Spring meetings at the two organisations’ headquarters in Washington, the United States, as contained in a communique issued at the end of the G24 meeting.
The meeting was attended by the IMF’s Managing Director, Ms. Christine Largade, as well as, Nigeria’s Finance Minister, Mrs. Kemi Adeosun, among other global finance ministers whose countries are members of the IMF.
A comprehensive review of the current quota formula at the IMF was completed in January 2013, when the Executive Board submitted its report to the Board of Governors. The outcome of this review will form a basis for the Executive Board to reach a broad consensus on a new quota formula as part of the 15th Review. Work on the 15th Review has been delayed, pending implementation of the 2010 Reforms.
The IMF’s Board of Governors conducts general quota reviews at regular intervals (usually every five years).
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