US Seeks Bigger China Role in IMF

The old saying claims, If you can’t beat them, then join them. In a bid for cooperation, the Bush administration pushes for China and other developing nations to have more power in the International Monetary Fund (IMF). The institution with 184 member countries promotes financial and monetary stability, international trade and poverty reduction. Europe, which could lose voting shares, resists the US plan to shift more power to China and other developing nations. With money flowing all over the globe at unprecedented rates, the US argues that the IMF must be reorganized to reflect the relative strength of various member economies. Both the IMF and other world organizations were established to prevent nationalism and financial problems that led to World War II. The Bush administration suggests that China’s massive currency reserves and trade surplus lead to increased exports and job loss throughout the US. The US analysts surmise that increased cooperation could prevent a global economic downturn An 85 percent vote is required for many IMF matters, and so any power shift will continue to require widespread global cooperation. –YaleGlobal