Brazil’s Finance Minister Guido Mantega has slammed the United States and Europe for repeatedly delaying reforms of their dominated shareholding and voting power in the International Monetary Fund(IMF).
In a statement on Friday Mantega accused the two for stalling the reforms, preventing a rebalancing, which could allow emerging economies more say. An IMF reform may be at its nadir. Target dates have been missed, delays and procrastination have become routine, " said Mantega. He continued by saying the two reforms - the approved 2010 rebalancing and capital doubling and a planned, general quota review - have been held up since 2011. The approved 2010 program has not been imposed since it needs the support of the United States, where Congress keeps on blocking ratification. The other planned quota review, which was scheduled to be completed by January 2014, has been postponed due to " resistance to change on the part of overrepresented European countries, " said Mantega.
" In other words, America is unable and Europe unwilling to follow through with agreed reforms. The institution ' s major shareholders are gambling, perhaps unwittingly, with the IMF ' s legitimacy and credibility. "
The postponements are stopping emerging economic powers like China, Russia, India and Brazil from getting greater say in IMF affairs through increased quotas. The finance minister also pointed out that the reforms originated from the 2007-2008 crisis in advanced economies and was set up by the Group of 20 economic powers with the support from emerging countries to increase the IMF’s resources for intervention and aiding troubled countries. The majority of the increase has been used in bailouts for eurozone countries Ireland, Greece, Portugal and Cyprus.