IMF Survey : Historic Reforms Double Quota Resources and Enhance Voice of Emerging and Developing Economies

IMF News, January 27, 2016

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The 2010 IMF quota and governance reforms entered into force and will "reinforce the credibility, effectiveness, and legitimacy of the IMF."
Reforms strengthen the voice and representation of emerging and developing economies, and provide more permanent resources to better respond to future crises.
The ratification clears the way for the Fund to begin the 15th review of its quotas.

IMF membership covered: 188 members.
Combined quotas will increase to SDR 477 billion (about US$659 billion) from about SDR 238.5 billion (about US$329 billion).
More than 6 percent of quota shares will shift to dynamic emerging market and developing countries and also from over-represented to under-represented IMF members.
IMF Executive Board composition: will be a 24-member Executive Board consisting entirely of elected Executive Directors.
Advanced European countries have committed to reduce their combined Board representation by two chairs by the next regular election of Executive Directors that will take place this fall.

For the first time, four emerging market countries—Brazil, China, India, and Russia—will be among the 10 largest members of the IMF.
Other top 10 members include the United States, Japan, and the four largest European countries (France, Germany, Italy, and the United Kingdom).
The reform ends the category of appointed Executive Directors (previously the members with the five largest quotas appointed an Executive Director).
The quota shares and voting power of the IMF’s poorest member countries will be protected.

The package will enhance the IMF’s ability to respond to crises more effectively through significantly increased quota resources.
The 15th review will provide an opportunity to discuss the size and composition of IMF resources and the distribution of quota shares among the Fund’s membership.
The reforms build on steps in 2008 and follow extensive consultations with member governments and outside stakeholders to reflect changing global economic realities.

IMF Managing Director Christine Lagarde: "I commend our members for ratifying these truly historic reforms." She emphasized a "more representative, modern IMF" better able to meet members' needs and noted that "it is not the end of change as our efforts to strengthen the IMF’s governance will continue."

IMF Survey, January 27, 2016