Finance ministers from the BRICS group of developing nations called on Saturday for reform of the International Monetary Fund, including a new distribution of voting rights and an end to the tradition of European management at the helm.
The joint statement by the group's finance ministers marks the first time the BRICS countries have agreed on a unified position on the proposed reforms. They agreed to back the shared proposal at an IMF review meeting coming up in December, which will discuss changes to a quota system that defines contributions and voting rights.
"Quota realignment should reflect members' relative positions in the global economy, while protecting the quota shares of the poorest members," the ministers wrote in their statement after meetings in Rio de Janeiro, adding that the new formula should increase quotas for developing countries.
The BRICS ministers called for a new formula weighted by economic output and purchasing power, considering the relative value of currencies, which should better represent low-income countries, said a Brazilian official who followed negotiations.
The ministerial meetings came ahead of a leaders summit in Rio for the bloc that expanded last year beyond Brazil, Russia, India, China and South Africa to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates.
That has added diplomatic clout to the group, which aims to speak for developing nations in the Global South, urging reforms of institutions long dominated by traditional Western powers.
"With full respect to a merit-based selection process, regional representation must be enhanced for the IMF management, overcoming the anachronistic post-World War II gentlemen's agreement that is unfit for the current world order," the finance ministers wrote.
Their statement also confirmed discussions to set up a new guarantee mechanism backed by the NDB, a multilateral bank funded by the BRICS, which aims to lower financing costs and boost investment in developing economies, as Reuters first reported on Thursday.
