G20 urges U.S. to support IMF reform

• Finance Ministers and Central Bank Governors from G20 countries had sharp words for the U.S. Congress, with the Group Treasurer describing Capitol Hill as being a “very difficult… obstacle” in their bid to pass internal reform of the International Monetary Fund (IMF).
• Issuing the Group’s statement during the annual fall meetings, Australian Finance Minister Joe Hockey, whose nation currently holds the Group’s presidency said,
• “It does affect the U.S. and their reputation, when there is global agreement and in fact agreement from the White House to undertake IMF reform… For domestic reasons the U.S. Congress might not be moving on this issue but for global reasons the U.S. should move on this issue.” More broadly, the Ministers and Governors said regarding the world economy, “While some key economies are recovering, others face renewed weakness.”
• Their statement also emphasised an agreement regarding a Global Infrastructure Initiative, and a Global Infrastructure Hub to support the Initiative, to be finalised before the Group leaders’ summit in November.
• The issue of reforming the Bretton Woods institutions has been a long-standing one, particularly for emerging economic powers such as India and China, who have consistently argued that the changing global dynamics favours their economies and it is high time that the institutions’ constituent structure reflected this new reality.
• In 2011, shortly before the announcement of the candidacy of current IMF Managing Director Christine Lagarde, its Executive Directors from the BRICS economies had openly revolted against the prospect of the top role remaining with a European.