IMF Finances

IMF Quotas -- A Factsheet

IMF Executive Board Discusses Quota Formulas
November 7, 2001

Report to the IMF Executive Board of the Quota Formula Review Group,
April 12, 2001

External Review of Quota Formulas:
Quantification
April 12, 2001

Staff Commentary on the External Review of the Quota Formulas
June 6, 2000

Alternative Quota Formulas: Considerations

Prepared by the Treasurer's and Statistics Departments
(In cooperation with other Departments)

September 27, 2001

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This paper is the latest in a series of ongoing work examining quota formulas. Calculations in the paper are purely illustrative.

Contents

Executive Summary
I.   Introduction
II.   History, Role, and Use of Quota Formulas
   
  • Relationship Between Formulas and the Functions of Quotas
  • Bretton Woods Formula
  • The Quota Formula Review Group (QFRG)
  • Use and Impact of Quota Formulas
III.   Choice and Specification of Variables
   
  • GDP
  • Openness
  • Capital Account and Variability
IV.   Technical Issues Related to the Form of the Formulas
V.   Quantification of Alternative Formulas
   
  • Choice of Formulas
  • Suggested Approach
  • Illustrative Calculations
VI.   Conclusions and Issues for Discussion
Text Boxes
  1.   Formula Proposed by QFRG
  2.   A Measure of Capital Openness
  3.   Capital Flows in a Balance of Payments Framework
  4.   Alternative Formula Specifications and Properties
  5.   Update of Existing Formulas
  6.   Quota Adjustment Process
Text Tables
  1.   Relative Size of Variable Coefficients in Current Five Formulas
  2.   Distribution of Variables in World Totals: Eleventh Review Data
  3.   Eleventh Review of Quotas: Distribution of Applicable Formulas
      in Final Calculated Quotas
  4.   Variable Coefficients and Calculated Quota Shares, by Formula
      Variant
  5.   Distribution of Variables in World Totals
  6.   Calculated Quota Shares, by Formula Variant
Annexes
  •   Selection of the Database, Derivation of Quota Variables, and
      Other Issues
  •   Evolution of Quota Formulas
Annex Box
  1.   Methodological Issues
Annex Tables
  1.   Countries for which Export Data were Adjusted
  2.   Goods in Processing as a Share of Total Exports, 1997–99
  3.   Average Adjustment to Current Account Receipts on Account of
       International Banking Interest, 1982–1994
Appendix Tables
  1.   Source Data for BOP Statistics used in Quota Exercise: Current
      Receipts and Net Capital Inflows, 1987–99
  2.   Source Data for BOP Statistics used in Quota Exercise: Current
      Payments and Gross Domestic Product, 1995–99
  3.   Data Used for Quantification of Quota Formulas