Skip to main content

BRIC leaders: IMF, World Bank has 'legitimacy deficits'

From left: Russia's President Dmitri Medvedev, Brazilian President Luiz Inacio Lula da Silva, China's President Hu Jintao and India's Prime Minister Manmohan Singh pose for the family photo of the II BRIC Summit in Brasilia on April 15.
From left: Russia's President Dmitri Medvedev, Brazilian President Luiz Inacio Lula da Silva, China's President Hu Jintao and India's Prime Minister Manmohan Singh pose for the family photo of the II BRIC Summit in Brasilia on April 15.
STORY HIGHLIGHTS
  • The leaders of Brazil, Russia, India and China called for reform of the IMF and World Bank
  • "The IMF and the World Bank urgently need to address their legitimacy deficits"
  • The summit was cut short because of the earthquake in Qinghai, China
RELATED TOPICS
  • China
  • Brazil
  • Russia
  • India

(CNN) -- The leaders of Brazil, Russia, India and China called for the hastening of reform that would give these emerging economies more power in the International Monetary Fund and the World Bank.

"The IMF and the World Bank urgently need to address their legitimacy deficits," the leaders said in a statement released at the second summit of the so-called "BRIC" economies meeting on Thursday in Brasilia.

"Reforming these institutions' governance structures requires first and foremost a substantial shift in voting power in favor of emerging market economies and developing countries to bring their participation in decision making in line with their relative weight in the world economy," the BRIC communiqué said.

The countries urged for voting power reform to give developing countries a larger say in the World Bank at the upcoming "Spring Meetings" on April 24 and 25 in Washington and similar quota reform of the IMF completed by the G-20 Summit scheduled for November.

The BRIC summit -- the second since the group met in Russia last year -- was moved up a day, as Chinese President Hu Jintao cut his trip short to return to China after the earthquake in Qinghai province near the Tibetan border killed more than 700 people.

The BRIC nations -- a term coined by Jim O'Neill of Goldman Sachs in 2003 as the group of the fastest growing world economies -- comprise 40 percent of the world's population and about a quarter of its landmass. Together their GDP is roughly two-thirds that of the United States.