Posted October. 22, 2010 11:47,
The International Monetary Fund is known to have made an internal document on detailed changes in IMF quotas for each country, with quota reform to be a major agenda item at the G20 Seoul summit next month.
A quota is determined by a countrys economic power measured through indicators such as GDP, exports of goods and services, and foreign exchange reserves. While IMF member countries must invest in the fund on a pro-rata basis, they have proportional voting rights, the right to use IMF funds, and the distribution rights of special drawings rights, a global currency issued by the fund.
For this reason, major economies try their best to get a higher quota even if the rise is just 1/100th of a percentage point.
According to the IMFs proposal, the emergence of "BRICs" -- Brazil, Russia, India and China -- is outstanding. China, which ranks sixth (4 percent) in IMF quotas, is expected to jump to third (6.32 percent) following the U.S. (17.67 percent) and Japan (6.56 percent).
Russia will rise from 10th (2.49 percent) to eighth (2.75 percent), India from 11th (2.44 percent) to ninth (2.62 percent), and Brazil from 14th (1.78 percent) to 11th (2.16 percent).
Korea will jump from 18th (1.41 percent) to 15th (1.81 percent).