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UPDATE 1-US's Geithner says emerging economies need more say

Published 07/28/2009, 10:15 AM
Updated 07/28/2009, 10:24 AM

(adds quotes, details)

WASHINGTON, July 28 (Reuters) - U.S. Treasury Secretary Timothy Geithner, opening a second day of economic talks with China on Tuesday, said he wanted to find a way to give key emerging economies more say in global financial institutions.

"Today, we will discuss governance reforms to help the IFIs (international financial institutions) be more representative of dynamic emerging economies, as well as strengthen their capacity to prevent future crises," Geithner said.

Seated beside Chinese vice premier Wang Qishan in the ornate Cash Room at the U.S. Treasury, Geithner said that decisions the two countries make now were "crucially important to the stability of the world economy as a whole."

The United States is trying to get China to reduce its reliance on exporting to U.S. markets and instead encourage more consumption at home to fuel its growth. In return, it is offering to back a stronger position for China in global councils.

"We'll discuss reforms to the IMF (International Monetary Fund), the World Bank and other international financial institutions to help make them more representative of dynamic emerging economies, such as China,' Geithner said.

The two-day summit with Chinese officials, called the Strategic and Economic Dialogue, wraps up later on Tuesday with press conferences and a closing communique. (Reporting by Glenn Somerville; Editing by Chizu Nomiyama)

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