Finance Minister Arun Jaitley has expressed deep disappointment over the non-implementation of IMF quota and governance reforms that would give it a greater say in the global crisis lender, matching the country's growing economic might.
The 2010 IMF quota reforms which were originally propelled by Washington, and the President Barack Obama's White House has repeatedly endorsed them, seeks to provide greater say to emerging economies like India and China at the Fund, where the US and large European countries command high influence. But the US Congress has refused to sign off on the deal, with some legislators not wanting to contribute more money to the IMF and others concerned about any erosion to the dominant US role at the fund.
Arun Jaitley said that governance reforms are required to ensure the International Monetary Fund’s credibility, legitimacy and effectiveness. He added that “A major challenge for emerging market economies is to raise growth by implementing growth critical structural reforms. The focus, in general, should be on encouraging infrastructure investment, strengthening the investment climate and improving human resource skills through education and training.” The Finance Minister said that at this juncture the global economy is facing some major challenges. “First, potential growth has declined in both the advanced and emerging market economies and needs to be raised.”
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