Washington, Nov 10 (DPA) Formal approval of long-discussed reforms of the International Monetary Fund (IMF) increases the weight of Brazil, Russia, India and China (BRIC) on the executive board.
The reform, the most fundamental overhaul in the fund’s 65-year history, was approved late Friday by the executive board of the IMF and means that European members, including Belgium and Germany, will lose clout in the organisation.
The changes also give more financial responsibility to the four countries, which have been agitating for more international recognition of their developing economic prowess.
The breakthrough agreement on the reforms was reached late last month in Kyongju, South Korea, where negotiators from the new world economic block – the G20 – came to an agreement about reapportioning IMF voting rights.
The formal adoption comes ahead of the Nov 11-12 summit of G20 leaders in Seoul. The G20 has for the most part replaced the G8 on international economic issues, after coming together in the crisis autumn of 2008 as the world stood on the brink of financial ruin.