Art & Culture
- Right to access internet is fundamental right declares Kerala High Court
- Legal rights of Deities in India, Difference in Natural and Juristic Person
- Bru refugees refuse to return to Mizoram
- No animal sacrifice in Tripura temple-Orders High Court
- EC’s Order on Reducing Sikkim CM’s Disqualification Period
- Law Ministry issues corrigendum to Jammu and Kashmir Reorganisation Act
- Appointment of the Judges in India.
- New Chief Justice of India- How is CJI appointed?
- Indian Penal Code 1860, HM Amit Shah wants to Overhaul IPC
- National Population Register (NPR) 2020
- Whistle Blowers Allegations on Infosys
Governance & Social Justice
- 60% girls in Delhi colleges anaemic
- Niti aayog’s School education quality index
- Multipurpose National Identity Card
- Population pyramid : India Vs China, Demographic dividend Phase of India
- UN Population Report, India will become the most populous country by 2027
- Supreme Court upholds SC and ST (Prevention of Atrocities) Amendments Act
- Comparing Population Pyramids of India and China
- Waqf boards-Their governance and purpose
- Harvard Admissions Case
- Pradhan Mantri Jan Arogya Yojana- Ist Anniversary, Problems and solutions
- Significance of sexual and Reproductive Health-Status of reproductive services in India
- Pregnancy in Old Age, What is In Vitro Fertilisation-Risks and legal shortcomings
- Supreme Court Judgement on NGOs and RTI
- Social Stock Exchange
- Rajasthan Govt changes EWS norms, Sets Rs 8 lakh family income as only criteria
- Global hunger index 2019
- No Government job for those with more than two kids
- Ranitidine CANCER risk
- IIT Council Introduces Tenure track system
- Bangladesh growing faster than India ?
- Cyprus dispute explained
- Donald Trump impeachment
- India wins Hyderabad Nizam case against Pakistan
- India’s reply to Pakistan at UNGA
- Prime Minister of Malaysia calls India and invader in Kashmir
- Should India recognise the armenian genocide ?
- Why are CARICOM countries important for India ?
- Why are countries leaving OPEC ?
- Attacks on Saudi Oil facilities
- Organization of Islamic Cooperation issues statement on Jammu and Kashmir
- Sri Lanka’s relations with India & China
- US troops start pullout in Syria as Turkey prepares for operation
- What are Vanilla Islands?
- India-USA trade deal
- UNHCR Nansen Refugee Award-2019
- Modi – Xi Informal meet at Mamallapuram – Historic Chinese links
- India China informal summit in Tamil nadu
- Pakistan save from FATF blacklist till 2020
- USA blacklists China organisations over Uighur Muslim abuse
- Why is Chile burning ?
- Why is the Philippines important for India
- Xi jinping Nepal visit 2019 and impact on India
- India Pakistan Cross LOC Trade suspended, Should India revoke suspension?
- Protests in Lebanon
- Chennai to Vladivostok Sea Route
- End of baghdadi
- Indian government’s security advisory
- Indians no longer require Visa to visit Brazil
- Non Aligned Movement 2019 summit
- US backed Ceasefire between Turkey and Kurds
- Pakistan stops postal exchange with India
- China’s GDP growth slows to 6% slowest in 27 years
- Common Goods for Health project by WHO
- Turkey attack Kurds in Syria
- Behavioural Aspect of Farmer Suicide
- Is rural India really open defecation free ?
- Global Growth Slow Down
- Nobel Prize in Economics 2019
- Regional Comprehensive Economic Partnership
- SBI wrote off bad loans worth 76,000 crores
- Surge in Onion Price
- Agriculture Credit by RBI’s Internal Working Group
- What is Debt to GDP Ratio?
- Yes Bank Crisis
- Nobel prize in Literature – Controversy
- Boosting Indian Exports
- Sopore Fruit Mandi deserted
- What is Pink Collarisation?
- Mizoram to have Broad Gauge railway line by 2021
- Demand downturn in Indian Economy
- Payment facilitation fund
- Participatory Guarantee Scheme
- RBI’s 4th Bi-monthly Monetary Policy 2019-20
- Tourism restrictions lifted in Kashmir
- Link between Jobs, Farming, and Climate
- Draft Social Security Code 2019
- State Tax Revenues, SGST and Central Tax Devolution are likely to fall short
- Competitiveness Index 2019 by World Economic Forum
- NITI Aayog’s Water Resources Strategy
- BSNL and MTNL financial issues-DoT prepares Rs 74000 crore revival plan
- 20th Livestock Census
- India falls 10 ranks in World economic forum’s Global competitiveness index
- RBI stops Printing Rs 2000 Notes
- What is the Unified Approach proposal of OECD?
- FCI granaries overflowing
- India’s Economic Growth 2019
- Financial Sector Scams in India
- Labour Market of India
- New Strategic Disinvestment Process
- Payment Delays to Sugarcane Farmers
- Why India’s IMF Quota is not increased
- What is monetary policy Transmission? Why banks are not reducing interest
- Mahatma Gandhi’s theory of Economics
- India moves up 14 spots to 63 on world Bank ease of doing business index
- New amendments to the Motor Vehicles Act
- Power Sector Scenario in India
- Telecos to Pay Rs 96,642 crore to the Government
- Camel population declines in Rajasthan
- Merger of BSNL and MTNL
- World bank on Indian economy
Defence & Security
- Nagas Kukis Conflict, What is the cause of the latest tensions?
- Case against 50 Celebrities controversy
- Can Indian Government intercept WhatsApp?
- UP Government fires 25000 home guards, Is Yogi Government’s decision justified?
- NCRB’s Crime in India 2017 report
- Aadhaar Social Media mandatory linking case
- What is TechSagar? National repository of India’s cyber tech capabilities.
Science & Technology
- ISRO’S Project NETRA
- Facebook’s LIBRA Currency in trouble
- WHO launches first World report on Vision
- 2019 Nobel prize in physics
- 2019 Nobel prize in Physiology and Medicine
- Elon musk’s starlink project
- NASA’s ICON mission
- New King of the Moons in the Solar system is Saturn
- What Is Spectroscopy ?
- Quantum supremacy
- Climate Vulnerable Mapping Of India
- C40 Cities
- Gujarat Unveils emission trading scheme
- Forest Plus 2.0
- Himalayan States seeks Green Bonus
- India to Phase Out Single Use Plastic (SUP) by 2022
- Role of Volcanoes in Global Warming
- NH 766 ban controversy, Protests in Kerala against night traffic ban on the forest stretch
- Climate Change needs Global Solution
- Aarey Forest -2185 trees to be cut for Mumbai metro
- Government to build 1400 km long Green wall
- Graded Response Action Plan in Delhi
- Aerosol formation brightening clouds
- Anthrax outbreak in Pobitora Wildlife Sanctuary, Two affected buffaloes died
- Species in News from June to October 2019
- Climate Action Summit 2019
Tag:GS3 || Economy || External Sector || International Monetary Fund
Why in news?
- India expresses disappointment over lack of support for IMF quota increase.
- India views “the lack of adequate support for a quota increase under the 15th GRQ (General Review of Quotas) as somewhat disappointing”.
About the International Monetary Fund (IMF):
- The International Monetary Fund (IMF) is an organization of 189 countries.
- Aim of IMF:
- to foster global monetary cooperation,
- secure financial stability,
- facilitate international trade,
- promote high employment and sustainable economic growth,
- and reduce poverty around the world.
- Founded: In 1945, the IMF is governed by and accountable to the 189 countries that make up its near-global membership.
- The IMF’s primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. The Fund’s mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.
What are quotas?
- Quotas play an essential part in the governance and functioning of the IMF. They fulfill three main functions:
- Voting power: Quotas are used to establish the number of votes each member country has at its disposal in the IMF’s decision-making system.
- Access to financing: They define the level of assistance member countries may resort to in case of need.
- Subscription: They are used to establish the amount of resources each member needs to provide to the IMF.
Current IMF quota:
- A quota formula is used to help assess a member’s relative position in the world economy and it can play a role in guiding the distribution of quota increases. The current formula was agreed in 2008 and a new quota formula is being discussed in the context of the 15th General Review of quotas.
Denomination of quotas:
- IMF Resources:
- Most resources for IMF loans are provided by member countries, primarily through their payment of quotas.
- Quota subscriptions are a central component of the IMF’s financial resources. Each member country of the IMF is assigned a quota, based broadly on its relative position in the world economy.
- The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves.
- Gold remains an important asset in the reserve holdings of several countries, and the IMF is still one of the world’s largest official holders of gold.
- While quota subscriptions of member countries are the IMF’s main source of financing, the Fund can supplement its quota resources through borrowing if it believes that they might fall short of members’ needs.
Role of quota:
When the IMF quota is changed?
- IMF quotas, which are the primary source of IMF funds, determine voting shares.
- Quotas are supposed to be reviewed every five years although these reviews can be delayed.
- The IMF Articles of Agreement mandate the Board of Governors to undertake a general review of quotas every five years or on an ad hoc basis. Any changes to the quotas, due to their zero-sum nature, need to be:
- a) supported by an 85% majority, and,
- b) Consented by the member countries affected.
15th General review of quota:
- The 15th quota review is likely to be no exception in this regard. Two key issues will arise-
- Overall sufficiency of IMF resources and
- Redistribution of quota shares, guided by the quota formula.
Benefits of IMF quota’s review:
- The quota review, should also address the long-pending issue of under-representation of the Emerging Market and Developing Economies (EMDEs) and the dynamic economies in the IMF’s quota shareholding.
- To ensure the stability of the international monetary and financial system, it is imperative that the IMF continues to remain at the center of the Global Financial Safety Net.
- For this to happen, the IMF should be able to maintain its current lending capacity to meet the needs of its members.
- Any adjustment in quota shares would be expected to result in increases in the quota shares of dynamic economies in line with their relative positions in the world economy and hence likely in the share of emerging markets and developing countries as a whole while protecting the voice and representation of the poorest member.
14th Quota review (2010):
- In December 2010, the IMF Governing Board concluded the 14th general review of quotas after considerable deliberations.
- Doubling the quotas: Firstly, overall quotas were doubled, which is unparalleled in the Fund’s history. This was, however, coupled with a slashing in half of the New Arrangement to Borrow (NAB).
- Redistribution of quota: Secondly, the redistribution of quota shares brought large gains for emerging market and developing economies (about 6%).
- The shift of quota shares shifted more than 6 percent of quota shares from over-represented to under-represented member countries; and more than 6 percent of quota shares to dynamic emerging market and developing countries.
- Protection of the poorest: preserved the quota and voting shares of the poorest member countries.
Why the quota has not increased?
- The deal is a compromise with the U.S., the Fund’s largest shareholder, which has resisted changes to the organization’s voting structure as well as increases in its permanent resource base.
- India requires at least 85% votes in its favor for changing the quota in the IMF.
Does India Need It?
- India last borrowed money from the IMF in 1993 and it repaid all its outstanding by 2000.
- However, India doesn’t just represent itself — it also represents Bangladesh, Bhutan, and Sri Lanka.
- An increase in quota, therefore, will not just benefit India but also the other three countries.
- India, however, considers this as a temporary setback. India hopes that the discussions in the next (16th) Round of the GRQ would achieve success in terms of quota increase to take care of the Fund’s resource adequacy.