Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

IMF Faces Criticism Over Reform

SINGAPORE -- Several large developing countries including India and Brazil that voted against an IMF reform plan said Tuesday that they would not give up their campaign to get a bigger voice at the Washington-based financial institution.

On Monday night, the 184-nation International Monetary Fund approved reforms that increased the voting shares of China, South Korea, Turkey and Mexico to reflect their growing stature in the global economy. In a second phase, the IMF plans to rework the voting rights of all member countries within two years.

The proposal won an overwhelming 90.6 percent of the vote.

But countries like India, Brazil and Egypt opposed the plan, saying they also were underrepresented at the institution. They argued that the entire power structure should be overhauled in one fell swoop.

The 23 countries that opposed "may have lost the vote, but we have not lost the argument," Indian Finance Minister Palaniappan Chidambaram said in an address to the boards of governors at IMF and World Bank.

"We were ... not in favor of any ad hoc-ism, including the proposed two-stage process based on a hopelessly flawed formula," he said. "We would hold the management of the IMF and the countries that supported the resolution to their promise that the second stage will begin now."

In the run-up to the vote, India, Brazil, Egypt and Argentina had issued a statement saying they doubted that the IMF would ever get to the second stage and that the quota reform should be carried out in one go, based on a new formula.

Other countries, such as Malaysia and Russia, said they opposed the two-stage approach but still voted for the reform plan.

Blocking the proposal would have further delayed any reform at all, they said.

Finance Minister Alexei Kudrin said "development of a new formula is the key element."

The weight of each country's vote in the IMF is linked to its quota, or financial commitment, to the institution.

The quotas are determined by the size of their economy, openness to trade and other criteria.