A committee of the International Monetary Fund supports a shift in voting power to developing countries, the (Raleigh) News and Observer reported Sunday.
The committee of the IMF, which facilities international trade and provides economic assistance to countries, supports shifting at least 5 percent of votes from developed countries with strong representation to underrepresented developing countries.
Many countries that used to lag behind are gaining on wealthy nations and the voting change would ensure adequate representation of those nations and those still struggling.
The committee wants a decision by January 2011. The change would be subject to approval by legislatures of some voting countries.
The Daily Tar Heel spoke with Patrick Conway, economics professor, about the shift.
“The people who started the IMF during World War II at Bretton Woods had a good idea,” he said.
The voting quotas were meant to be proportional to each country’s share in international trade — and in 1945 they were, Conway said. However, they no longer reflect the economic climate, he said.
Since 1945, new countries formed and others grew. Now countries such as China, India, Taiwan and Brazil are developing into major economic powers.
The U.S. and some European Union countries now have a controlling share of the IMF votes. The new quotas could make decisions more contested, Conway said.
“It’s quite possible in some contentious decisions that the EU/U.S. bloc will not get what they want,” he said.
What you're saying:
"I do feel like it’s a good idea to redistribute. They should have a say in what issues should be resolved with international help.” - Anuraag Pendyal, sophomore
"I think it’s definitely more beneficial because more people will have a voice about how money is spent. Although I do think there will be conflict because one country will not have power.” - Chazle' Lassiter, sophomore
“I guess if you look at the name of the organization — the International Monetary Fund — it’s international, so it should have an international focus. Reflecting an accurate balance of power within the IMF would be beneficial.” - Josh Middleton, sophomore
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