IMF Quota and Governance Publications

Last Updated: October 9, 2012

On December 15, 2010, the Board of Governors of the International Monetary Fund (IMF) approved a package of far-reaching reforms of the Fund's quotas and governance. These reforms represent a major realignment in the ranking of quota shares that better reflects global economic realities, and a strengthening in the Fund’s legitimacy and effectiveness.

• This completes the 14th General Review of Quotas with an unprecedented doubling of quotas and a major realignment of quota shares—a shift of more than 6 percent from over-represented to under-represented members and a more than 6 percent quota shift to dynamic emerging market and developing countries.
  
  

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• The reforms also protect the quota shares and voting power of the poorest members.
  
  
• The Board of Governors also supported an amendment to the Articles of Agreement that would facilitate a move to a more representative, all-elected Executive Board.

Members will make best efforts to complete their domestic approval processes of these reforms by the Annual Meeting of the Board of Governors in October 2012.

The 2010 reforms build on an earlier set of reforms that were approved by the Board of Governors in April 2008 and came into effect on March 3, 2011, with the acceptance of the ‘Voice and Participation’ amendment to the Articles of Agreement by 117 member countries representing 85 percent of the total voting power. (The requirement for amendments to the Articles to enter into force is acceptance of at least three-fifths of member, representing 85 percent of the total voting power.) The 2008 reforms strengthen the representation of dynamic economies, many of which are emerging market countries, through ad hoc quota increases for 54 member countries. They also enhance the voice and participation of low-income countries through (i) an almost tripling of basic votes—the first increase since the IMF's creation in 1945, (ii) a mechanism that, going forward, will keep constant the ratio of basic votes to total IMF voting power, and (iii) enabling Executive Directors representing 7 or more members to each appoint a second Alternate Executive Director following the 2012 regular elections of Executive Director.

For the 14th General Review and associated reforms to also come into effect, (i) the proposed amendment to the Articles of Agreement on reform of the Executive Board needs to be accepted by at least three-fifths of IMF members representing 85 percent of the total voting power, and (ii) members representing at least 70 percent of the total quotas on November 5, 2010 must consent in writing to their quota increases. Many member countries will need the approval of domestic legislatures to accept the proposed amendments to the Articles of Agreement.

Reaching agreement on these reforms involved substantial deliberation by the IMF's Executive Board, with key documents associated with these discussions listed below.

• Acceptances of the Proposed Amendment of the Articles of Agreement on Reform of the Executive Board and Consents to 2010 Quota Increase
• 2010 Quota Reform: IMF Executive Board Approves Major Overhaul of Quotas and Governance
• 2008 Quota Reform: IMF Board of Governors Adopts Quota and Voice Reforms by Large Margin
• Issues Brief: Quota and voice reform
• Reforming the IMF's Governance
• IMF Members' Quotas and Voting Power, and IMF Board of Governors
• IMF Executive Directors and Voting Power
• Articles of Agreement