US recognizes growing importance of emerging nations: Geithner

US recognizes growing importance of emerging nations: Geithner

Istanbul/New Delhi: Asserting that the US is committed to supporting reforms in international financial institutions, US treasury secretary Timothy Geithner on Monday said his country recognizes the growing importance of emerging nations in the global economy.

Geithner noted that the success of World Bank in meeting the challenges would depend on the entity’s global legitimacy.

“The US remains committed to supporting governance reforms that will strengthen the credibility and legitimacy of the international financial institutions by recognizing the increasing importance of emerging market countries in the global economy," he said at the Joint World Bank-IMF Development Committee Meeting in Istanbul.

At the recently concluded G-20 Summit in Pittsburgh, the leaders agreed to increase the voting share of emerging nations, including India to 5% in the International Monetary Fund.

In the World Bank, India has said it is looking to hike the voting share of developing nations to 6%.

According to Geithner, the World Bank, the regional development banks and the IMF have played a vital role in cushioning the financial crisis impact on poor and middle income countries.

“Collectively, the development banks have increased their lending targets by over $100 billion above planned pre- crisis levels, fulfilling their London commitment of at least $100 billion in new resources," he noted.