Reforming Global Institutions
There is need for bigger voice in the International Monetary Fund for the countries that are re-shaping the global economy. The Australian Presidency had focussed on International Financial Architecture (IFA) reform as a core area of discussion. IFA Reform is a topic that includes a wide range of issues such as:
- Governance and legitimacy of the International Financial institutions
- Presence and efficiency of multilateral standards, guidelines and recommendations
- Issues of global liquidity, capital flows, reserve currencies, exchange rates, etc.
Priorities for Turkish Presidency-2015
- There will be a continued emphasis on the ratification of the 2010 IMF Quota and Governance Reform. Completing the IMF reform will not only ensure a more even-handed realignment in the ranking of quota shares, but also help the Fund maintain its legitimacy and effectiveness.
- In case of a failure to do so, G20 will start discussions on the alternative ways to enhance the governance of the Fund, with a view to preserve the spirit of the 2010 Reform Package.
- Strengthening the IMF surveillance in the post-crisis world, addressing concerns related to the stigma associated with the Fund financing and ensuring adequacy of the global financial safety net will also be within the G20 radar under the purview of the International Financial Architecture agenda.