## Press Release: IMF Board of Governors Adopts Quota and Voice Reforms by Large Margin _IMF News, April 29, 2008_ ## Source details **Canonical URL:** [Press Release: IMF Board of Governors Adopts Quota and Voice Reforms by Large Margin](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr0893) ## Other formats - [Markdown version](/en/news/articles/2015/09/14/01/49/pr0893/index.md) - [Structured JSON version](/en/news/articles/2015/09/14/01/49/pr0893/index.json) - [Bundle manifest](/en/news/articles/2015/09/14/01/49/pr0893/bundle-manifest.json) ## Bibliographic details - Published: April 29, 2008 --- ### Vote outcome and political significance - On April 28, the Board of Governors of the International Monetary Fund (IMF) adopted by a large margin far-reaching reforms of the institution's governance. - Governors from 180 of the 185 member countries cast their votes. - 175 countries representing 92.93 percent of the total voting power in the Fund voted in favor of changes to the quota and voting share structure. - Approval of the Resolution required 85 percent of the total voting power. - Voting turnout and approval metrics cited by IMF leadership: - "With a voting turnout of 97.8 percent of member countries, and with 94.6 percent of the members approving these reforms, I see this result as the beginning of the new legitimacy of the Fund." — Dominique Strauss-Kahn. - The Managing Director’s assessment: - "This vote shows the overwhelming level of support across the Fund's membership for these reforms, and I thank the members for this resounding endorsement." - "This makes the Fund the first international financial institution to implement such deep governance reforms." ### Main reform elements and expected effects - Reforms aim to enhance the participation and voice of emerging market and developing countries, and to realign members' shares with their relative weight and role in the global economy. - Reallocation and voice changes: - The new quota and voting structure is described as "more dynamic and forward-looking." - The package "represents an important step toward a redistribution of voting shares toward dynamic emerging market and developing countries" with an expected continued shift over the next decade. - Specific measures included in the reform package: - Increase in the voting shares of more than two-thirds of the 185 member countries. - Tripling of basic votes — "the first such increase since the Fund's creation in 1944" — aimed at enhancing the voice and participation of low-income countries. - A mechanism included in the package "that will keep constant the ratio of basic votes to total voting power in the IMF" to preserve the tripling element. - Enabling each of the two Executive Directors representing African constituencies to appoint an additional Alternate Director. - The Executive Board recommended the reform package on March 28 (see Press Release No. 08/64). ### Implementation steps and legal requirements - The Resolution proposes an amendment of the Fund's Articles of Agreement. - Effectiveness conditions: - The amendment will need to be accepted by at least three-fifths of IMF members representing 85 percent of the total voting power to become effective. - Domestic approvals: - Most member countries will need the approval of domestic legislatures to accept the proposed amendment. - Quota increases: - The proposed increase in quotas will require further action by those member countries eligible to receive an increase in their quotas. ### Institutional context and governance mechanics - Board of Governors: - The Board of Governors is the highest decision-making body of the IMF and consists of one governor and one alternate governor appointed by each member country. - The governor is usually the minister of finance or the governor of the central bank. - Most powers of the IMF are vested in the Board of Governors; the Board may delegate to the Executive Board all except certain reserved powers. - The Board of Governors normally meets once a year. - Executive Board: - The Executive Board functions in continuous session and is responsible for conducting the business of the IMF. - It is composed of 24 Directors, who are appointed or elected by member countries or by groups of countries, and the Managing Director, who serves as its Chairman. - The Board usually meets several times each week and carries out its work largely on the basis of papers prepared by IMF management and staff. - Quotas and financial resources: - Each member country of the IMF is assigned a quota, based broadly on its relative size in the world economy. - Quota subscriptions generate most of the IMF's financial resources. - A member's quota determines its maximum financial commitment to the IMF and its voting power, and has a bearing on its access to IMF financing. - Total quotas at end-March 2008 were SDR 217.4 billion (about US$354.3 billion). *Press Release: IMF Board of Governors Adopts Quota and Voice Reforms by Large Margin (April 29, 2008).* --- ## Content in this bundle - [Pr0893apdf (PDF)](/-/media/websites/imf/imported/external/arabic/np/sec/pr/2008/pr0893apdf.pdf){rel="external" type="application/pdf"} - [Pr0893cpdf (PDF)](/-/media/websites/imf/imported/external/chinese/np/sec/pr/2008/pr0893cpdf.pdf){rel="external" type="application/pdf"} - [Pr0893jpdf (PDF)](/-/media/websites/imf/imported/external/japanese/np/sec/pr/2008/pr0893jpdf.pdf){rel="external" type="application/pdf"} - [Pr0893rpdf (PDF)](/-/media/websites/imf/imported/external/russian/np/sec/pr/2008/pr0893rpdf.pdf){rel="external" type="application/pdf"} --- ## References - [Press Releases](https://www.imf.org/en/news/searchnews) - [PRESS CENTER](http://presscenter.imf.org/) - [Press Release No. 08/64](https://www.imf.org/external/np/sec/pr/2008/pr0864.htm) - [https://www.imf.org/en/home](https://www.imf.org/en/home) _Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr0893_