Indian central bank governor and former chief economist of IMF urges IMF and World Bank reforms

International financial institutions should change they way they work to reflect the needs of emerging economies, said Raghuram Rajan, Indian central bank governor and former chief economist of the International Monetary Fund.

Rajan called for industrialized nations to put more capital into organizations such as the World Bank, a “global safety net” backstopped by the IMF to help economies suffering from liquidity crises, and for emerging economies to be included in policy discussions at an earlier stage, Financial Times reports. Rajan said there is no substitute to reforming the global multilateral institutions and making them work more broadly.

Emerging market companies have grown frustrated with the dominance of industrialized countries in the funding and voting rights of the World Bank, IMF and Asian Development Bank. There have been calls for the IMF to be led by someone from the developing world.