26. In long-pending reforms that came into effect, emerging and developing economies gained more influence in the governance architecture of the International Monetary Fund (IMF).
Consider the following statements related to IMF reforms,
i. India’s voting rights increase to 2.6 per cent from the current 2.3 per cent.
ii. The IMF’s Executive Board will consist entirely of elected Executive Directors, ending the category of appointed Executive Directors.
Which of the above statements is/are correct?
26. In long-pending reforms that came into effect, emerging and developing economies gained more influence in the governance architecture of the International Monetary Fund (IMF).
Consider the following statements related to IMF reforms,
i. India’s voting rights increase to 2.6 per cent from the current 2.3 per cent.
ii. The IMF’s Executive Board will consist entirely of elected Executive Directors, ending the category of appointed Executive Directors.
Which of the above statements is/are correct?
The correct option is C c) Both
Ans 26 C
Explanation:
IMF reforms:
India’s voting rights increased by 0.3% from the current 2.3% to 2.6%. China’s voting rights increased by 2.2% from current 3.8% to 6 %. Also gives boost the representation of emerging economies like India, China, Brazil, Russia and increases their power and greater say in IMF. These reforms shifted more than 6% of the quota shares to emerging and developing countries from the US and European countries. Russia and Brazil also have gained from the reforms. The doubling of quotas means that the shares (roles) of advanced European and Gulf countries have been reduced and that of emerging nations particularly China has been increased. China will have the 3rd largest IMF quota and voting share after the US and Japan. While, India, Russia and Brazil will also be among the top 10 members of the IMF. The voting power and quota shares of the IMF’s poorest member countries will be protected. Under the reform, for the first time IMF’s Executive Board will consist entirely of elected Executive Directors and it ends the category of appointed Executive Directors.
c) Both
Ans 26 C
Explanation:
IMF reforms:
India’s voting rights increased by 0.3% from the current 2.3% to 2.6%. China’s voting rights increased by 2.2% from current 3.8% to 6 %. Also gives boost the representation of emerging economies like India, China, Brazil, Russia and increases their power and greater say in IMF. These reforms shifted more than 6% of the quota shares to emerging and developing countries from the US and European countries. Russia and Brazil also have gained from the reforms. The doubling of quotas means that the shares (roles) of advanced European and Gulf countries have been reduced and that of emerging nations particularly China has been increased. China will have the 3rd largest IMF quota and voting share after the US and Japan. While, India, Russia and Brazil will also be among the top 10 members of the IMF. The voting power and quota shares of the IMF’s poorest member countries will be protected. Under the reform, for the first time IMF’s Executive Board will consist entirely of elected Executive Directors and it ends the category of appointed Executive Directors.
