Finance Ministers and Central Bank Governors of BRICS nations (Brazil,Russia,India,China and South Africa) have expressed concerns over the slow pace at which quota and governance reforms were being implemented in the International Monetary Fund. A communique,after a meeting of BRICS nations in Washington on Thursday,said that the IMF must move ahead with the comprehensive review of the quota formula by January 2013 and the completion of the next review of quotas by January 2014. This is needed to increase the legitimacy and effectiveness of the Fund. We reiterate our support for measures to protect the voice and representation of the IMFs poorest members, the statement said. BRICS nations also stressed that multilateral development banks need to continue to play a vital role in meeting the long term development finance needs of developing nations. In the current global economic environment,the banks need to mobilise more resources to increase their assistance to low income and other developing countries including finding ways of expanding their lending capacity,so that development finance is not neglected,it said. BRICS countries recovered quickly from the 2008 global financial crisis but continue to face challenges in the form of inflationary pressures and growth prospects that have been dampened by global market instability. In advanced countries,the build up of sovereign debt and concerns regarding medium to long-term plans of fiscal adjustment are creating global uncertainties. Also,excessive liquidity from policy actions to stabilise domestic economies has been spilling over into emerging markets,fostering excessive volatility in capital flows and commodity prices.
