IMF Finances

IMF Quotas -- A Factsheet

External Review of Quota Formulas: Quantification
April 12, 2001

Report to the IMF Executive Board of the Quota Formula Review Group - Annex

Report to the IMF Executive Board of the Quota Formula Review Group - Statistical Appendix - Part A

Report to the IMF Executive Board of the Quota Formula Review Group - Statistical Appendix - Part B

Staff Commentary on the External Review of the Quota Formulas

Report to the IMF Executive Board of the Quota Formula Review Group

April 28, 2000

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Contents

I.   Executive Summary and Recommendations
    Main findings
    Recommendations
II.   Terms of Reference of the Review of the Quota Formulas
  • Purpose of the Review
  • Focus of the Review
  • Procedures
III.   Quota Formulas—Background and History
  • Functions of IMF Quotas
  • History of the Formulas
      The original Bretton Woods formula
      Formulas for the Fourth through the Seventh
       General Reviews
      Formulas for the Eighth through the Eleventh
       General Reviews
  • How Variables Affect the Calculated Quotas
  • Role of Quota Formulas in Determining Actual Quotas
  • Issues Concerning the Quota Formulas
IV.   Changes in the World Economy
    Major developments since Bretton Woods
    Elements of continuity
    Implications on the review of the quota formulas
V.   Statistical Inferences from Actual Quotas
    Statistical estimation
    Estimation results
    Deviation of members’ initial quotas from their
     calculated quotas
    Convergence of actual to calculated quotas
VI.   Proposals for Change in the Quota Formulas
    Variables in the quota formula
      Ability to contribute
      Need for IMF resources
      Other possible variables
      Data weaknesses and other issues
    On EMU
    The linearity problem
    Concluding remarks and basic recommendations
Appendix
Biographical Notes on QFRG Members
Boxes
  1.   The Financing Mechanism of the IMF
  2.   Evolution of the Quota Formulas
  3.   Quotas of New Members and Ad Hoc Quota Increases
Tables
  1.   Cumulative Access Limits under Credit Tranche Policies
  2.   Calculated and Actual Quotas at the Bretton Woods Conference
  3-A.   Average Contributions of Variables to Calculated Quotas
  3-B.   Relationship Between Calculated Quotas and Variables Entering into the Quota Formulas
  4.   General Reviews of IMF Quotas
  5.   Ad Hoc Increases in IMF Quotas
  6.   Fund Members that did not Consent to the Proposed Maximum Quota Increase under Past General Reviews
  7.   Quotas, SDRs, and Global Indicators
  8.   Selected Industrial and Middle-Income Developing Countries: Monthly Changes in Gross Reserves (1985-93) Relative to IMF Quota
  9.   Summary Statistics of Equations Fitted to Actual Quotas
  10.   Relative Contributions of Variables to Calculated Quotas
  11.   Estimated Quota Shares for Country Groups by WEO Classification