IMF hopeful of implementing quota reforms

International Monetary Fund is hopeful of implementing its quota reforms soon, the Managing Director of the financial institution Christine Lagarde has said while observing the global body should mirror the needs of the world.

"Our institution has to mirror the world, has to mirror the evolution of the world as well in order to be legitimate, credible, and to that end we hope very much that the 2010 governance and quota reform will be implementable and implemented in the short run. . .," said Lagarde.

This is ". . .just as much as we want to also pursue in parallel the quota formula review as well as the 15th review of our quotas", Lagarde said in her interaction with reporters on the sidelines of the annual spring meeting of the IMF and World Bank in Washington on Thursday.

Responding to questions, Lagarde said she draws some hope from the fact that the US ratification of the quota and governance

reform that had been approved by US President Barack Obama, and is now included in the budget law that is going to be discussed by the Senate.

"Given the multilateral nature, or DNA, of this institution, I very, very much hope that the US authorities, the legislative branch, if you will, will support that proposal, and will join the club of the many, many member states that have ratified the reform," she said.

On global imbalances, Lagarde noted that IMF is assessing external imbalances and misalignments through its new External Sector Report.

"We are striving to shine a light on the spillovers that weave and wend their way through an increasingly interconnected global economy," she said.

On multilateralism, she noted that throughout the crisis governments have made strong efforts to avoid fragmentation.

"Cooperation remains essential," she said, noting that certain forms of regionalism, such as regional trade agreements, can help foster trade among certain groups of countries.