(3 minutes read)
IMF member states have agreed to increase their contributions to the global lender and to give Africa a third seat on its Executive Board. Africa had two seats on the Board, which will now increase to three
IMF member states have agreed to increase their contributions to the global lender and to give Africa a third seat on its Executive Board. Africa had two seats on the Board, which will now increase to three. This was announced by the International Monetary Fund in Marrakech, Morocco.
IMF officials urged their members to step up funding for the institutions so that they can better support governments in the fight against poverty and climate change. In a statement issued IMF said that the meeting resolved to maintain strong support for efforts to address debt vulnerabilities and the closure of the financing gap of the Poverty Reduction and Growth Trust to continue helping most vulnerable members.
The Fund-Bank meeting concluded yesterday (Sunday). At present, the distribution of quotas favors the advanced economies, particularly the European countries. It works to the detriment of the major emerging countries, led by China and India. These countries have been calling for a reform of the system for several years. The reluctance on the part of the Western countries to reform the rules governing the IMF and the World Bank, analysts say, on account of the apprehension that the Chinese would start playing a bigger role in the multilateral lending organizations, which can erode the powers presently wielded by the Western countries.
Read Also:
https://trendsnafrica.com/imf-lowers-gdp-growth-of-mena-region-due-to-israel-palestine-conflict/
Kristalina Georgieva, IMF Managing Director said that despite so much tension and differences, the meeting could achieve the objectives set out. Although the distribution of votes has not been changed, the IMF has agreed to expand its Board from 24 to 25 members, to give an additional seat to Africa. The meetings were being held on the African continent for the first time since 1973.
