20 December, Washington
US Senate has adopted long awaited reforms to give emerging economies a greater say in how the International Monetary Fund is managed.
China’s voting rights will rise to 6 per cent from 3.8 per cent and IMF resources will double to about 660 billion dollars.
This is the biggest shake up since the IMF and the World Bank were set up to manage the post-World War Two economy.
China has set up the Asian Infrastructure Investment Bank as an alternative to the IMF and the WB.
The IMF reforms were agreed by its 188 members in the aftermath of the world financial crisis in 2010.
As China’s voting rights rise, the US will see its share drop from 16.7 per cent to 16.5 per cent.
The US also retains its veto power.
India’s voting rights will also rise to 2.6 per cent from the current 2.3 per cent. The biggest losers are European economies which will see their voting rights diminished.