The world’s top finance officials are calling on the United States to follow through on previously agreed IMF reforms in order to boost the fund’s resources and give more power to emerging markets.
Wrapping up a joint meeting of the G20 and the International Monetary Fund in Washington, Seoul’s finance minister also pushed the need for balanced global growth.
Song Ji-sun reports. Finance chiefs from around the globe have given the United States until the end of the year to ratify long-delayed reforms to the International Monetary Fund.
Members of the G20 have threatened to move forward without it if Washington fails to do so. The delay in reforms agreed four years ago has overshadowed even the crisis in Ukraine and the spillover effects of ultra easy monetary policies in advanced economies.
G20 finance ministers and central bankers said they were “deeply disappointed” with the delay… and urged the United States to implement the reforms as a matter of urgency.
“There is no question about the current adequacy of the IMF’s resources and there is consensus on the absolute importance of maintaining a strong and adequately resourced IMF. At our meeting, we agreed on a way forward that keeps the focus on the priority of passing the 2010 reforms in the U.S. Congress.”
The reforms would double the IMF’s resources and hand more voting power to countries with emerging markets.
Developing countries also pushed for a balanced economic recovery and cooperation from all countries.
Korea’s Finance Minister Hyun Oh-seok warned that any drastic shifts in advanced economies’ monetary policies could bounce back at them.
“It’s critically important that developed countries pace their monetary policy changes as they have an impact on developing economies.
Data shows that a one-percentage point drop in developing countries’ growth knocks developed countries’ growth by one-tenth of a percentage point.”
Hyun added U.S. Federal Reserve’s stimulus tapering could have a negative effect on emerging economies, … but Korea remains on the recovery track.
Song Ji-sun, Arirang News.