Korea to have bigger say in IMF.
The 184 member countries of the International Monetary Fund (IMF) approved a proposal on September 18 to overhaul the way voting shares are distributed in the organization, raising the stakes of Korea and several other emerging market economies. Korea, the world's 12th largest economy, had its share of the total votes in the IMF raised from 0.764 percent to 1.346 percent, jumping from 28th to 19th place in terms of influence out of the 184 voting countries. Korea will contribute an additional US$1.294 billion to the organization in special drawing right funds, equivalent to 1.236 trillion won.
The IMF has been discussing a plan to reform its governance in a move that will give more power to emerging market economies in Asia and elsewhere. Many emerging market economies such as Korea and Mexico have been urging the IMF to make changes to ensure that each country's vote is scaled to reflect its weight in the world economy.
Quotas, the amount of money each member country contributes to the IMF, which determines its voting power, are based broadly on a country's size in the world economy and calculated according to gross domestic product, the openness of an economy, variables and reserves.
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|Title Annotation:||Economic News Briefing; International Monetary Fund|
|Publication:||Economic Bulletin (Korea)|
|Article Type:||Brief article|
|Date:||Sep 1, 2006|
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