Rethinking the Governance of the International Monetary Fund

Author/Editor:

Abbas Mirakhor ; Iqbal Mehdi Zaidi

Publication Date:

December 1, 2006

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper attempts to set out the principal issues that need to be resolved in formulating a proposal for quotas and voice reform in the IMF that could command broad support. Following John Rawls, we argue that "justice is the first virtue of social institutions," and we use his theory of justice to provide a method for understanding what should be the case, in the context of voice and voting shares, before international institutions, such as the IMF, are to be justifiable to their members. The implementation of this process suggests, among other things, that a major revision of the quota formulas is long overdue, and leaving this unaddressed raises serious questions regarding the IMF's governance which could develop into a core mission risk and jeopardize the relevance of the institution.

Series:

Working Paper No. 2006/273

Subject:

Capital flows Financial crises International reserves Labor Market exchange rates

English

Publication Date:

December 1, 2006

ISBN/ISSN:

9781451865332/1018-5941

Stock No:

WPIEA2006273

Pages:

46

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