BRICS Nations Call for IMF Reform: A Unified Stand for Change
Finance ministers from the BRICS nations have unified their call for comprehensive reform of the International Monetary Fund. They propose a redistribution of voting rights, increased quotas for developing countries, and an end to European management dominance. The reforms aim to better represent developing nations and include new financial mechanisms.
The finance ministers of the BRICS group, comprising Brazil, Russia, India, China, and South Africa, alongside newly included members such as Egypt and Indonesia, have for the first time reached a consensus on reforming the International Monetary Fund. The ministers signed a joint statement pressing for a recalibration of voting rights and leadership roles, traditionally held by Europeans.
The forthcoming IMF review meeting this December is set to discuss quota realignment aimed at reflecting countries' standings in the global economy, emphasizing increased representation for developing nations. The ministers argue for a new formula that factors in economic output and purchasing power, which would favor low-income countries.
In a bid to enhance global financial equitability, discussions are underway to establish a new guarantee mechanism under the New Development Bank, as confirmed by the finance ministers. This move seeks to reduce financing costs and spur investments in developing regions, signaling the bloc's growing influence in the global financial landscape.
(With inputs from agencies.)
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