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G20:Europeans Resist More Clout for South in IMF
G20:IMF Finds a New Unpopularity
PITTSBURGH, Sep 25 (IPS) - An initiative to reform the International Monetary Fund (IMF) voting structure is causing tension at the G20 here as European delegations resist a U.S.-spearheaded effort to give greater clout to emerging economies, primarily because it would decrease European voting power.
The proposed reform would increase the voting power of emerging economies in the IMF in hopes that these increasingly wealthy and influential countries would become more engaged members of the Fund.
"A shift toward emerging countries at the International Monetary Fund (IMF) and the World Bank is the right thing to do and it's going to happen," U.S. Treasury Secretary Timothy Geithner told reporters in Pittsburgh Thursday.
But some civil society groups disagree. "It is tinkering," Jon Slater, Oxfam's economic justice press officer, told IPS. "The reforms we've seen in the draft communiqué don't address the fundamental need for [change in] how votes in the IMF are allocated. The IMF will remain the rich country club." MORE
G20:IMF Finds a New Unpopularity
BRATISLAVA, Sep 25 (IPS) - When some Eastern European states faced economic collapse as the financial crisis took hold, the International Monetary Fund (IMF) stepped in and offered governments huge loans.
But, as the G20 summit in Pittsburgh considers reform of the IMF, some economists and sociologists are now asking whether the social and economic cost of adhering to the strict credit conditions that came with them may not be too high for some.
Mark Weisbrot, co-director of the Washington-based think tank, the Centre for Economic and Policy Research told IPS: "The IMF loans have made the economic and social situations in these countries worse.
"The IMF will say that if a country is living beyond its means then it has to adjust, but what they do is make the adjustment even harder with really austere (loan) conditions."
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