New Delhi: The government on Friday gave its approval to amendments in the Articles of Agreement of the International Monetary Fund (IMF) that seek to reform the multilateral body and provide greater representation to emerging economies.
"The Union Cabinet gave its approval to certain amendments to the IMF's Articles of Agreement on reform of the executive board of the IMF," Information and Broadcasting Minister Ambika Soni told reporters here.
These amendments, she added, "represent a major overhaul of the fund's quotas and governance and (will) help in strengthening the fund's legitimacy and effectiveness."
Under the new dispensation, all 24 executive directors of the IMF will have to be elected by the members, as against the earlier system of having a member representing each of the five largest quota (shareholder) countries.
"The proposed amendments would facilitate a move toward a more representative, all-elected executive board, ending the category of appointed executive directors," she said.
The changes, Soni added, "are part of efforts at the IMF to reform its governance structure to give greater representation to emerging market and developing countries (EMDCs) to reflect the new global realities."
These amendments follow the 14th General Review of Quotas by the IMF, during which it was also decided to reduce the number of executive directors representing advanced European countries by two in favour of emerging economies.