By IANS,
London : India, China, Russia and Brazil have opposed protectionism, while demanding a much greater say in the running of global financial institutions like the International Monetary Fund (IMF) and the World Bank.
“Protectionism remains a real threat to the global economy and should be avoided, both in direct and indirect forms,” said a communique by the four countries, collectively referred to as BRIC economies.
The communique was issued after a meeting among their top economic policymakers here. Finance Minister Pranab Mukherjee had led the Indian side.
The communique said the ongoing regulatory reforms being undertaken in the global financial and trading systems should not impede cross-border flows of capital and investment.
“We believe governments should work towards prompt and successful conclusion of the World Trade Organisation (WTO) Doha round in a way that ensures an ambitious, comprehensive and balanced outcome,” it said.
Earlier, India formally committed to investing in the IMF, which Prime Minister Manmohan Singh had proposed during the G20 Summit here in April.
“India has decided to invest up to $10 billion of its reserves in notes issued by the IMF,” Mukherjee said after the meeting. It marked a major shift in India’s economic strature globally as in the early 1990s, it had to seek funds from the IMF.
The Indian pledge is part of a total of $80 billion that the four BRIC countries will invest in the IMF in order to replenish its fund aimed at helping out countries, which are struggling in the current financial crisis.
China alone will account for $50 billion of this amount.
In return, the four countries have sought a greater say in the running of the IMF and other international financial institutions such as the World Bank, including a larger share of quotas and voting, said Brazil’s Finance Minister Guido Mantega.
US Treasury Secretary Timothy Geithner had also joined a part of the meeting, a move which Mukherjee maintained was “an acknowledgement of the group’s emergence as a key voice in global economic and financial issues”.
During the meeting, the four economies said a target must be set that will see a shift of 7 percent of the voting rights of the IMF and 6 percent in the World Bank towards emerging economies to ensure their equitable distribution with rich nations.
“The next managing director of the IMF and the next president of the World Bank should also be elected in a manner which is irrespective of nationality or any geographical preference,” said ther communique.