The Executive Board of the International Monetary Fund (IMF) has recommended to the IMF Board of Governors a package of reforms on quotas and voice in the IMF to better align the current governance regime with members' relative positions in the world economy and to make it more responsive to changes in global economic realities while, and equally important, enhancing the participation and voice of low-income countries in the IMF.
It is expected that the Board of Governors will vote on the package of reforms by its upcoming Annual Meeting in Singapore on September 19-20, 2006.
"The Executive Board's decision represents an endorsement of fundamental reform that will enable the Fund to evolve to meet the challenges of a changing global economy," IMF Managing Director Rodrigo de Rato stated.
"To meet global challenges, we need to make sure the voice and representation of members is appropriate and the system that determines governance of the Fund is as transparent as possible."
The quota and governance reforms are designed as an integrated two-year program that should be completed no later than the Annual Meeting of the IMF Board of Governors in 2008.
The reform package consists of the following elements: initial ad hoc increases in quotas for a small group of the most under-represented countries comprising China, Korea, Mexico and Turkey.
To start immediately work on a new formula to guide the assessment of the adequacy ofmembers' quotas in the IMF and be completed by the 2007 Annual Meetings; a second round of ad hoc quota increases based on the new formula.
And work on a proposal to increase the basic votes that each member possesses to ensure adequate voice for low-income countries in the IMF.
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International Monetary Fund
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