By Zheng Lifei (China Daily)
Updated: 2007-11-20 09:15

Greater say

For example, China can make use of its greater say to work with other countries to cut the strings usually attached to development assistance provided by the United States and European countries.

"The quota and voice reform provides a good opportunity for China to further expand its voting rights in the Fund," Tan said.

World Bank, World Trade Organization and IMF are three pillars international financial and trade organizations that serve as links and hubs among the market economies with which China must engage, CASS's Zhang said.

"If you cannot go it alone and must live side by side with them, it's better to take an active role and try to have your opinions heard according to their game rules rather than passively following them.

"But China should move cautiously and not be too aggressive in demanding the quota increase to avoid backlash from some countries."

China's position on the reform is clear.

At last month's annual IMF meeting in Washington, Vice-Minister of Finance Li Yong said: "The reform should be aimed at significantly raising the overall quota shares of developing countries - particularly for emerging market economies - and strengthening the voice of the low-income countries in the Fund."

Experts say China should be actively involved in the reform and seek a quota size befitting its economic weight.

As the Chinese economy becomes increasingly integrated with the world economy, maintaining global economic stability through international institutions, such as IMF, is in China's self interest, said Tsinghua University economics professor Li Daokui, who once worked for IMF.

Stronger voice

"Therefore, China should have a voice in the Fund that is commensurate with its weight in the global economy to safeguard its own interests," Li said.

In recent years, developing and emerging market countries have been increasingly active in pressing for quota reforms to give them stronger voices in IMF policymaking.

"Today, emerging markets contribute to a better equilibrium in global finance, while developed countries have contributed to disequilibrium," Brazilian Finance Minister Guido Mantega said at the IMF annual meeting in Washington last month.

Emerging markets, he explained, are also greater contributors to world growth than developed countries.

"The conclusion of this is that we have a much larger economic responsibility, and therefore, we need a larger representation in the Fund," Mantega said.

   1 2   

   1 2