How Does the IMF Make Decisions?

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The IMF’s voting power and decision‑making reflect member countries’ relative economic position rather than one‑country/one‑vote.
The Fund seeks to ensure its governance structure keeps pace with changes in the world economy, including the larger role of emerging market and developing economies.
The Board of Governors is the IMF’s highest decision‑making body; most powers are delegated to the Executive Board.

Composition and role:
- The Executive Board has 25 members and conducts the day‑to‑day business of the IMF.
- It discusses all aspects of the Fund’s work, from staff annual reviews of member countries' economies to policy issues relevant to the global economy.
Decision processes:
- The Board normally makes decisions based on consensus, but sometimes takes formal votes.
- A member’s votes equal the sum of its basic votes (equally distributed among all members) and quota‑based votes; a member’s quota determines its voting power.
- Following most formal meetings, the Board issues a “Summing Up” document of its views.
- Informal meetings may be held to discuss complex policy issues at a preliminary stage.

Composition and functions:
- The Board of Governors consists of one governor and one alternate governor for each member country; the governor is usually the minister of finance or the head of the central bank.
- The Board of Governors approves quota increases, allocates or cancels special drawing rights (SDR), admits new members, orders compulsory withdrawal of members, and amends the Articles of Agreement and By‑Laws.
- The Board of Governors elects the Executive Directors and is the ultimate arbiter on interpreting the Articles of Agreement.
Decision rule and meetings:
- Unless otherwise specified in the Articles of Agreement, decisions by the Board of Governors are made by a majority of votes cast in person or electronically.
- The Board of Governors of the IMF and the World Bank Group normally meet once a year in October.
- By custom, the IMF–World Bank Annual Meetings are held in Washington D.C. for two consecutive years and in an alternate member country in the third year.

Two ministerial committees advise the Board of Governors: the International Monetary and Financial Committee (IMFC) and the Development Committee.
The IMFC:
- The IMFC has 25 members drawn from the Board of Governors.
- It meets twice a year, during the IMF–World Bank Spring and Annual Meetings, to discuss management of the international monetary and financial system and any proposed amendments to the Articles of Agreement or other matters of common concern affecting the global economy.
- The IMFC issues a summary of its views following each meeting, providing guidance for the IMF’s work.
- The IMFC operates by consensus and does not conduct formal votes.
The Development Committee:
- The Development Committee has 25 members, usually ministers of finance or development.
- It advises the Boards of Governors of the IMF and the World Bank on economic issues in developing countries and provides a forum for building consensus on critical development issues.

The Managing Director:
- The Managing Director chairs the Executive Board and heads the IMF staff.
- The Managing Director is appointed by the Executive Board for a renewable five‑year term.
- When selecting a Managing Director, the IMF’s Governors and Executive Directors may nominate individuals from any IMF member country.
- Although the Executive Board may select a Managing Director by a majority of votes cast, in recent years appointments have been made by consensus.
Support structure:
- A First Deputy Managing Director and three Deputy Managing Directors assist the Managing Director.

Objective:
- The IMF’s governance structure must keep pace with the rapidly evolving world economy to remain an effective and representative institution for all its 191 member countries.
14th General Review of Quotas (implemented in 2016) included:
- An unprecedented increase in quotas and a shift in shares: quotas doubled from the previous level set in 2008 and a major realignment shifted quotas and voting shares to developing countries.
- Protections for poorest member countries: protections apply to countries eligible for the IMF’s low‑income Poverty Reduction and Growth Trust and whose per‑capita income fell below the International Development Association’s threshold.
- A new, more representative Executive Board: an amendment to the Articles of Agreement established an all‑elected Executive Board, facilitating a move to a more representative body.
Subsequent review timeline:
- In 2020, the Board of Governors adopted a resolution completing the 15th Review without an increase in quotas and called for the 16th Review to be completed by December 15, 2023.
- As part of the 16th Review, the Executive Board will revisit the adequacy of quotas and IMF governance.