IMF committee backs plan to give emerging economies more influence

International Monetary Fund policymakers backed the most sweeping overhaul of the institution for six decades to give China, South Korea, Mexico and Turkey more influence within the organization.
The plan to overhaul the 61-year-old IMF, whose balance of power still largely reflects the economic landscape at the end of World War II, was approved by the IMF's International Monetary and Financial Committee.
"We welcome today agreement to a comprehensive reform package for quotas which, if moved forward, we want to be completed no later than the 2008 annual meetings," UK Chancellor of the Exchequer Gordon Brown said.
"These reforms we agreed should also enhance the participation and voice of low income countries in the International Monetary Fund," said Brown, chairman of the committee.
"This package when implemented will make significant progress in realigning quota shares with members' relative position in the world economy," said Brown, describing it as the biggest reform to the governance of the IMF for 60 years.
The plan now goes to the 184-strong membership of the Fund for final approval, with an announcement of the result of the vote expected by Tuesday.
After the Singapore gathering, further discussions will seek agreement on a new formula to calculate the dollar quotas that each IMF member contributes to the Fund and which determine its voting rights.