Thursday, April 30, 2009

IMF head: bigger role of China in global economy legitimate

WASHINGTON, April 28 (Xinhua) -- International
Monetary Fund Managing Director Dominique Strauss-Kahn said on Tuesday that it
is legitimate for China to play "a bigger role" in the world economy.


"The crisis is certainly an opportunity to reshuffle
the IMF's governance, to see the new balance of powers in the world,"
Strauss-Kahn responded to a question raised by Xinhua.

"I do believe that it is an opportunity for China to
play a bigger role," he said, noting that it is "legitimate" for China due to
its size of economy, population and the efforts by the Chinese government to
cope with the crisis.

"I think it is good for everybody that China becomes
a more and more big player in the world economy," he stated, adding that China
will also take more responsibilities.

Meanwhile, the IMF chief said that the influence of a
member country is not simply a question of its quota.

What determines the influence of a country in the IMF
is its engagement with the Fund, including providing resources or providing
technical assistance, said Strauss-Kahn.

China's central bank governor Zhou Xiaochuan last
week urged the IMF to push forward its own reforms and said that China is
willing to explore modalities and make appropriate contributions to the IMF.

"We believe that the size of contribution should
reflect members respective rights and obligations in the Fund," said Zhou at the
International Monetary and Financial Committee (IMFC) meeting held here
Saturday.

"We must emphasize that the Fund is a quota-based
institution, and that quota increases and realignment are the basic means of
resolving the issue of the Fund's inadequate resources and are an essential
requirement to improve the Fund's governance structure," Zhou said.


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