International Finance International Finance
The Group of 20 finance leaders has struck a landmark deal with the objective of boosting developing countries' power in the International Monetary Fund. The deal was hailed as a "historical" moment by IMF Managing Director Strauss-Kahn. The deal will lead to the Europeans giving up two seats on the fund's 24-strong board to powerful developing countries and transfer 6% of votes to them, marking the biggest reform ever in the governance of the institution.
A year ago, the G20 agreed to shift at least 5% of voting rights to developing countries such as India and Brazil in light of their low level of influence within the IMF as opposed to their emergence as major engines of global growth.