‘IMF hopeful of implementing quota reforms soon’

The International Monetary Fund (IMF) is hopeful of implementing its quota reforms soon, IMF Managing Director Christine Lagarde has said, while observing that the global body should mirror the needs of the world.

“Our institution has to mirror the world, has to mirror the evolution of the world as well in order to be legitimate, credible, and to that end we hope very much that the 2010 governance and quota reform will be implementable and implemented in the short run...,” said Lagarde.

This is ”...just as much as we want to also pursue in parallel the quota formula review as well as the 15th review of our quotas”, Lagarde said here yesterday in her interaction with reporters on the sidelines of the annual spring meeting of the IMF and World Bank.

Responding to questions, Lagarde said that she draws some hope from the fact that the US ratification of the quota and governance reform that had been approved by US President Barack Obama, and is now included in the budget law that is going to be discussed by the Senate.

“Given the multilateral nature, or DNA, of this institution, I very, very much hope that the US authorities, the legislative branch, if you will, will support that proposal, and will join the club of the many, many member states that have ratified the reform,” she said.

On global imbalances, Lagarde noted that the IMF is assessing external imbalances and misalignments through its new External Sector Report.

“We are striving to shine a light on the spill-overs that weave and wend their way through an increasingly inter-connected global economy,” she said.

On multilateralism, she noted that throughout the crisis, governments have made strong efforts to avoid fragmentation.

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