Unfair Allocation of IMF Voting Rights vs Global GDP for the BRIC Nations


  • We all know that US share of global GDP is larger than the BRIC countries like China and India.
  • However, China is catching up and recent surveys do indicate that China’s global share of GDP will surpass the US as early as next year.
  • With this in mind you would think that it would only be fair that the Share of IMF  Voting Rights should be allocated according to your share of global GDP, correct? WRONG!!!
  • According to the IMF and FT graphic below, the US has nearly 4.5 times more voting rights than China, whereas the difference in their share of global GDP is only 1.2 times that of China. Hmmmm . . .

Share of GDP & IMF Voting Rights 2014

 

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