The head of the International Monetary Fund (IMF) Kristalina Georgieva has backed reforms that could eventually give Beijing more voting power within the fund, warning of "devastation" if the institution remains without adequate financial resources to aid struggling countries.
In an interview with the Financial Times, Kristalina Georgieva called for the IMF to better represent changes in the global economy over the past decade, which include the rise of China.
"There is a need to constantly change to reflect how the world economy is changing," she said, in an implicit reference to the disparity between Chinas 6 % share of voting power in the IMF and its heft in the world economy, which is roughly three times as much.
Noting that she was encouraged by "how the fund has been able to mobilize and overcome differences in views so many times since Covid-19 hit," Georgieva said of the changes in voting power: "I am optimistic that we will go there."
Traditionally each IMF member country has a so-called quota, based on its position in the world economy, which determines its contributions to the fund as well as its voting weight within the institution and access to emergency financing.
China, now the worlds biggest bilateral lender, has been criticized by western creditors for hampering debt relief deals for troubled countries.
At present, Chinas quota is less than Japans, despite its larger share of global gross domestic product.
The IMFs board of governors conducts quota reviews at least every five years. The last time it agreed changes was in 2010. Since then, Chinas economy has grown considerably.
Georgievas call for a longer-term rethink of IMF representation comes amid a US effort to shore up Washington-based multilateral institutions to increase western influence with emerging and developing countries.
