IMF Reform Effective: There Is Quite a Fight Ahead
Valentin KATASONOV The
2010 IMF quota and governance reforms took effect on January 26.
Approved by the IMF's Board of Governors in 2010, they will double the
IMF's quota and reallocate quota and voting shares. This will better
reflect the changes in relative weights of the IMF member countries in
the global economy.
2010 IMF quota and governance reforms took effect on January 26.
Approved by the IMF's Board of Governors in 2010, they will double the
IMF's quota and reallocate quota and voting shares. This will better
reflect the changes in relative weights of the IMF member countries in
the global economy.
On December 15, 2010, the Board of Governors, the Fund’s highest decision-making body, completed the 14th General Review of Quotas, which involved a package of far-reaching reforms of the Fund’s quotas and governance.
Having become effective, the Review will:
-
double quotas from approximately SDR 238.5 billion to approximately SDR
477 billion (about $659 billion at current exchange rates);
double quotas from approximately SDR 238.5 billion to approximately SDR
477 billion (about $659 billion at current exchange rates);
-
shift more than 6 percent of quota shares from over-represented to
under-represented member countries (dynamic emerging markets and
developing countries).
shift more than 6 percent of quota shares from over-represented to
under-represented member countries (dynamic emerging markets and
developing countries).
The
under-represented group includes the states with emerging economies,
first of all China and other BRICS members (Brazil, Russia, India, and
South Africa). The over-represented category comprises the so-called
developed countries, especially G7.
under-represented group includes the states with emerging economies,
first of all China and other BRICS members (Brazil, Russia, India, and
South Africa). The over-represented category comprises the so-called
developed countries, especially G7.
The Fund had been ripe for revision of the rules since a long time ago. The IMF introduced no changes regarding
the two groups in a quarter of century (1985-2010). The BRICS capital
share in the IMF was 9.8 percent in 1995. By 2010 it had insignificantly
increased to 10.6 percent.
the two groups in a quarter of century (1985-2010). The BRICS capital
share in the IMF was 9.8 percent in 1995. By 2010 it had insignificantly
increased to 10.6 percent.
