G20 Nations Expect IMF Quota Reforms by 2019

Efforts will be made to complete the quota reforms at the International Monetary Fund by 2019, the G20 nations said late Saturday as they emphasized the need for representative global economic and financial institutions for sustainable development.

Quota reforms would provide more voice for emerging economies, including India, at the multilateral institution, PTI reported.

“We will enhance the international financial architecture and the global financial safety net with a strong, quota-based and adequately resourced IMF at its center,” the nations said in their declaration after the two-day summit in Hamburg, Germany.

“We look forward to the completion of the 15th General Review of IMF Quotas, including a new quota formula, by the Spring Meetings 2019 and no later than the Annual Meeting of 2019,” it added.

The G20 nations stressed on the need for strong and representative global economic and financial institutions to underpin growth and sustainable development.

Stating that efforts would continue for a globally fair and modern international tax system, the G20 nations said they are committed to the implementation of the Base Erosion and Profit Shifting package. “We look forward to the first automatic exchange of financial account information under the Common Reporting Standard in September 2017. We call on all relevant jurisdictions to begin exchanges by September 2018 at the latest,” the declaration said.

Besides, the G20 countries agreed to advance the effective implementation of the international standards on transparency and beneficial ownership of legal persons and legal arrangements, including the availability of information in the domestic and cross border context.

The grouping also expressed their commitment to mitigate greenhouse gas emissions through increased innovation on sustainable and clean energies.

  G19 Vs US

The G20 meeting is supposed to be one of those boring gatherings where world economic powers get together to slap each other on the back and utter platitudes about things they all agree on.

This year though, the conflicts were clear and the divisions were stark. No split was more evident than climate change, where President Donald Trump was left isolated as every other world leader signed up to the final compromise agreement that declared the Paris accord “irreversible”. They also vowed that the deal would be implemented “swiftly” and without exceptions.

Global leaders didn’t hide their anger at Trump’s intractable position. British Prime Minister Theresa May, for example, said she was “dismayed at the US decision to pull out” of the Paris accord and had personally urged Trump to reconsider. German Chancellor Angela Merkel also was careful to highlight the points of disagreement with the US. “Wherever there is no consensus that can be achieved, disagreement has to be made clear,” Merkel said at the end of the summit. “Unfortunately—and I deplore this—the United States of America left the climate agreement.”