UPDATE 1-Must reform IMF to fix global economy -Brazil

(Recasts, adds quotes from President Lula's adviser, background)

By Walter Brandimarte

PITTSBURGH, Sept 24 (Reuters) - Reforming multilateral institutions such as the International Monetary Fund in order to give a greater voice to emerging nations is a critical part of measures needed to fix the global economy, a top Brazilian official said on Thursday.

Brazil and other developing countries have been pushing rich nations to accept a 7 percent shift in voting power at the IMF that would benefit emerging nations. The issue is on the agenda of the Group of 20 summit being held in Pittsburgh on Thursday and Friday.

But support for the proposal to reform voting power at the IMF has been facing increasing opposition from rich countries, especially European nations, as leaders gather for the meeting, said Marco Aurelio Garcia, foreign policy adviser to Brazilian President Luiz Inacio Lula da Silva.

"If we don't want to have a lame response to the crisis, we need to reform the organizations that will coordinate economic policy in the future," Garcia told reporters.

A face-to-face meeting of leaders of the G20 rich and developing countries later on Thursday will be crucial for an agreement on specific changes in IMF quotas, he added.

"If we don't reach an agreement now with the presidents, how are we going to get to an agreement?" Garcia said, stressing that opposition to the plan comes from "over-represented" European countries, not the United States.

On the other hand, Brazil sees a U.S. proposal to rebalance the global economy as less pressing than the need to regulate the financial system and to reform the IMF, Garcia said.

Regarding another U.S. plan to phase out fossil fuels subsidies, he said Brazil, the world's largest ethanol exporter, supports not only the elimination of subsidies to fossil fuels but also to renewable fuels. (Editing by Leslie Adler)