Press Release: The IMF's 2008 Quota and Voice Reforms Take Effect

IMF News, March 3, 2011

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Canonical URL: Press Release: The IMF's 2008 Quota and Voice Reforms Take Effect

The 2008 Quota and Voice Reforms entered into force March 3, 2011, following ratification of the Amendment on Voice and Participation to the Fund’s Articles by 117 member countries, representing 85 percent of the Fund’s total voting power.
The amendment strengthens the representation of dynamic economies in the IMF and enhances the voice and participation of low-income countries.
IMF Managing Director Dominique Strauss-Kahn called for governments to ratify speedily the 2010 Amendment on the Reform of the Executive Board and to implement the quota increases to further align representation in the IMF with global economic realities.

Result in a significant shift in the representation of dynamic economies through quota increases for 54 member countries amounting to SDR 20.8 billion (about US$32.7 billion), which will become effective for those members that have consented to their increases once quota subscriptions are paid.
Enhance the voice and participation of low-income countries through an almost tripling of the basic votes of which each member has an equal number.
Establish a mechanism that will keep constant the ratio of basic votes to total votes in the IMF.
Enable Executive Directors representing 7 or more members to appoint a second Alternate Executive Director following the 2012 regular elections of Executive Directors.

In December 2010, the Board of Governors approved further quota and governance reforms with the completion of the 14th General Review of Quotas and an amendment of the IMF’s Articles of Agreement on the reform of the Executive Board.
This package, once ratified, will:
- double quotas to approximately SDR 476.8 billion (about US$751.1 billion);
- shift more than 6 percent of quota shares to dynamic emerging market and developing countries;
- protect the quota shares and voting power of the poorest members.
With this shift, Brazil, Russia, India, and China will be counted among the Fund’s 10 largest shareholders.
The 2010 reforms will lead to an all-elected Board, and advanced European countries are committed to consolidate their representation by two chairs.
A comprehensive review of the quota formula will be completed by January 2013 and the 15th General Review of Quotas will be brought forward to January 2014.

The IMF described the combined reforms as representing the most fundamental governance overhaul in the IMF’s 65-year history and the biggest-ever shift of influence in favor of emerging market and developing countries.
The Managing Director emphasized that implementation of the reforms reflects the membership’s commitment to strengthening the IMF’s effectiveness, credibility, and legitimacy.

An amendment to the IMF’s Articles of Agreement enters into force for all members on the date the IMF certifies that three-fifths of IMF members representing 85% of the total voting power have accepted the amendment.

Source: Press Release No. 11/64, March 3, 2011 — "Press Release: The IMF's 2008 Quota and Voice Reforms Take Effect."