Global finance and monetary agencies have been slow to reflect the power and influence of emerging economies in the new world economic order — but this is now changing.
The UAE Cabinet has approved an increase in its share of the International Monetary Fund's (IMF) capital, making it the biggest contributor to the fund in the Arab world. The fund uses its resources to promote economic growth and development and stability in the international financial system. It is perhaps best known for stepping in to assist countries facing financial crisis, like Greece.
The IMF will have to do more to protect the international financial system from the dangers still threatening it, including continuing debt defaults, and it has approved an increase in contributions by its members to raise its capital.
Traditionally dominated by the US and European countries — who were often accused of using the IMF to force governments to adopt policies they approved of in exchange for assistance — the fund has now had to turn to emerging economies for support.
By taking up the challenge and increasing their influence in the IMF, countries like the UAE will greatly increase the credibility and influence of the fund as it works to keep the global financial system stable in these troubled times.
