Levina Kato, Dodoma, 8th February 2010 @ 11:00, Total Comments: 0, Hits: 287
THE Parliament today ratified the amendments on the Articles of the Agreement of the International Monetary Fund (IMF) to give more voice to African countries on the IMF Board decision-making process.
The proposed amendments, aims at giving the IMF full mandate to use funds from the Special Disbursement Account for investments without seeking the consent of all 186-member states.
The Deputy Minister for Finance Mr Omari Yusuf Mzee said the amendments will help developing countries from becoming the victims of residual decision making process as a result of giant economic powers dominance.
“Since the country has capital problems, funds from the IMF could be directed to home-grown programmes vis a vis external grown ideas,” he said.
None of MPs contributed to the Agreement verbally, but a few presented written contributions, according to Mr Mzee.
He said IMF membership comprised four groups Anglophone (20countries) and Francophone (23countries), the US and the UK.
The IMF structure indicates that the Anglophone group has one Governing Director and one supporting staff to IMF Governing Board.
Whereas, the US and the UK has one Governing Director and one supporting staff each. “This is unfair representation of the Anglophone group which has many countries.
We hope to have more voice and convincing powers,” the minister told the national assembly. The minister earlier pleaded with the MPs to endorse changes arguing that the proposed amendments were a good start to give more say to poor countries.
If 80 per cent of the IMF membership endorses the amendments the Anglophone group will have six Governing Directors to IMF Board who are expected to influence the Fund’s decisions.
However, the minister noted that the changes in IMF Governing board structure will have no influence in casting votes.
The Anglophone, Francophone and the US voting powers are 3.01 per cent, 1.35 per cent and 16.77 per cent respectively. No country implements its socio-economic programmes without the involvement of IMF.
The Chairman of the Parliamentary Committee for Finance and Economic Affairs Dr Abdallah Kigoda urged members of the parliament to approve the changes.
Dr Kigoda said the amendments were in response to long-lasting call of poor countries to IMF decision that had adverse impacts on poor countries’ economic and social development. “These changes will improve IMF investments in the African continent,” he noted.
Tabling the opposition recommendations, Mr Mwadini Abbas Jecha (Wete –CUF) commended the move as positive in coping with global financial reforms.
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