Global Indian News
Amid renewed global spotlight on the ease of doing business in India, Prime Minister Narendra Modi has underlined his commitment to carry forward his ‘Reform to Transform’ agenda and raised the bar for reform of global economic governance institutions.
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In an important step in the direction of reforming global financial governance architecture, the voting rights of emerging economies like India and China in the International Monetary Fund (IMF).
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It seems to be a golden period for China with yet another non-Bretton Woods institution challenging the West-dominated international financial institutions which have controlled the global financial system post 1945. Two days after 50 countries signed on to become members of the China-led Asian Infrastructure Investment Bank, the Chinese Parliament has ratified the creation of the New Development Bank of BRICS countries. The parliaments of India and Russia have already ratified the NDB, which will be headquartered in Shanghai, and will have an Indian as the CEO of the newly created institution.
With the setting up of these two banks, China has scored a point against the US and the West which have been ignoring the BRICS’ appeal for greater voting rights in the IMF and reform of global financial governance system. The NDB’s shareholding is on an equitable basis, with China, India, Brazil and South Africa contributing 20 per cent of the start-up capital of $50 billion, with a goal to reach a capitalization of US$100 billion.
The formal launch of NDB and AIIB is set to recast global financial landscape. Some will contend that 2015 seems to be the year of China when it became a game changer by hosting two new multilateral banks of the global South.
India’s Finance Minister Arun Jaitley has expressed his disappointment over the non-implementation of IMF quota and governance reforms, which would give emerging economies a greater say in global financial management. …
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