ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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GUJARAT-Patchwork Ministry

Hong Kong this year, could not he altogether dismissed as having been all talk and no action. At long last there was agreement on increasing the IMF's total quotas by 45 per cent. The size of the quota increase had been a matter of dispute for some years. In the past the dispute was linked to the manner of increase in individual country quotas. Should it be on the basis of the existing quotas? The decision now is that 75 percent of the overall increase will be distributed in proportion to the existing quotas and 15 per cent on the basts of quotas calculated on the basis of 1994 data "so as to better reflect the relative economic position of members'', with the remaining 10 per cent being distributed among members whose current quotas arc "out of line with their present positions in the world economy". India's publicly slated position on the distribution of the proposed increase was obviously not found acceptable by those who dominate decision-making in the IMF/World Bank and whose ideas on what represents *the relative economic position' of a member country arc what matter. Otherwise why should India's share of IMF quotas go down as a result of the latest increase? In fact, given that the overall increase in GDP of the third world has in the past decade or so exceeded that in the developed world, the former's share in total quotas should, following the formula suggested by India, have improved and not declined, as it has under the Hong Kong dispensation.

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