US Democrat Schiff says Trump's Ukraine call could justify impeachment    Egypt adopts integrated plan to improve cotton and textile industries: Public business sector minister    Busy schedule for President Sisi on sidelines of the UNGA session    Egypt's indexes fall to multi-year lows as protests weigh in    Travel group Thomas Cook battles for survival with final creditor meeting    UN agency: Tanzania not sharing details on Ebola-like cases    Valverde worried by Barca's limp away form after Granada defeat    Amazon's Jeff Bezos pledges to swiftly combat climate change    Baby gut study finds bacteria different after C-section births    Live score: Arsenal v Aston Villa (English Premier League)    Zidane unfazed by Mourinho talk as Real prepare for Sevilla test    Saudi Arabia says if attack launched from Iran, it would be an act of war: CNN    Ukraine's president promises to safeguard c.bank's independence at IMF meeting    Zamalek president Mortada Mansour talks Egypt's Super Cup, unveils reasons behind defeat    Hong Kong riot police curb airport anti-government protest after clashes    Huawei, China Mobile team up to bid for Brazil's Oi – report    Egypt's EGAS to clinch seven exploration agreements in Q4    Grand Egyptian Museum's construction works 93% complete    Egypt's Health Ministry bans all ranitidine medicines    Thomas Cook in talks with UK government and investors over rescue deal    El Gouna Film Festival celebrates 100th birth anniversary of novelist Ihsan Abdel-Quddous    FIPRESCI and Netpack hosted by El Gouna Film festival for the first time    Small protests in Egypt dispersed by police    Ahly wins Egyptian Super Cup after beating Zamalek    Rare protests in Egyptian streets after online call for dissent    Egypt's tuk-tuk start-up Halan to tap Ethiopia before year-end    Egypt's health ministry bans all ranitidine medication    Cairo Opera hosts closing ceremony of the Cairo International Festival for Contemporary and Experimental Theatre    Allianz Egypt allots $399K to promote UNICEF's vulnerable children initiative    Felix Brych to referee Ahly-Zamalek Super Cup game in Egypt's Alexandria    'Egypt will not allow any country to impose its will on another in Ethiopian dam issue,' FM says    Egypt, Ethiopia at odds as talks over Blue Nile dam resume    Egypt says GERD talks with Ethiopia 'stumbled', next round in Khartoum in October    Egypt's Sisi discusses education, terrorism at national youth conference    Egypt's PM discusses details of Al-Hussein Mosque renovation    Egypt's Baron Empain Palace to be reopen after renovation    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Give-and-take needed on IMF reforms: Egypt minister
Published in Daily News Egypt on 07 - 10 - 2010

WASHINGTON: The only way to break a deadlock over how to give emerging nations more say at the International Monetary Fund is to make sure everyone walks away feeling like a winner, Egypt's finance minister and chair of the IMF's steering panel said on Wednesday.
In a Reuters interview, Youssef Boutros-Ghali said unless emerging markets feel their voices are heard inside the IMF, the fund cannot be an effective forum for addressing tough global issues including tensions over currency exchange rates.
Emerging markets demand representation commensurate with their increasing economic clout, but Europeans don't want to lose seats on the IMF's executive board and Americans don't want to give up their veto power.
"Let's agree on a package of measures where all of us, each of us, can find some winning element," said Boutros-Ghali, who chairs the IMF's International Monetary and Financial Committee, which convenes on Saturday as part of the twice-yearly meetings of the IMF and World Bank.
The IMF's 187 member countries must agree on a series of reforms including a redistribution of IMF quota shares, which determine voting power of each member country, and the makeup of the IMF board, currently dominated by European countries.
Instead of tackling each issue separately, Boutros-Ghali said all the issues should be wrapped up into one package so that there will be room for give and take.
The United States, frustrated with Europe's refusal to share more power, last month declined to back a resolution that would have maintained European dominance on the IMF board.
European countries and the United States dominate the IMF in a reflection of the post World War Two order, which is now being challenged by the rise of nations such as China.
Europe has proposed rotating two of its nine seats on the IMF board with emerging economies, but the United States is unlikely to accept the compromise because it does not amount to meaningful reform.
"The board issue in isolation is unsolvable because there is a winner and a loser. The loser will not accept the loss and the winner can wait," said Boutros-Ghali.
Going their own way
Boutros-Ghali said he wants countries to narrow their list of demands so that they can forge some consensus this weekend around a compromise that might break the impasse before leaders from Group of 20 nations meet in Seoul in November. The IMF has pledged to finalize its reform plans by January.
Without changes that give emerging markets more influence, the IMF would become irrelevant, he said.
"(Emerging economies) won't hang around. They will just leave and go their own way, and when we need them to establish a framework, the IMF will be irrelevant because you have ignored the main drivers of the system."
"They will continue on their merry way and leave you behind," he added.
Boutros-Ghali said the IMF was the only forum where countries from around the globe could come together to work out their economic differences.
He said the G20 club of rich and emerging economies was only effective when member countries agree on issues. When they don't, the IMF is the logical choice to step in as neutral arbiter, but can only fill that role when all parties respect its authority, Boutros-Ghali said.
"When they all agree then it's easy, but when they disagree what do we do?" he said.
Boutros-Ghali said the IMF had to be modernized and given the tools not only to spot crises in a more integrated world, but also the influence to tackle economic problems.
"The IMF is the optimum forum where currencies should be discussed and where currency policy should be coordinated," he said.


Clic here to read the story from its source.