IMF urges members to approve quota, voice reform adopted in 2008

10:57, April 25, 2010      

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The International Monetary Fund (IMF) Saturday urged members to approve the quota and voice reform package adopted by the organization in 2008, which aims to increase the representation of developing countries.

"We urge all members to promptly consent to the 2008 quota and voice reform ... we call for an acceleration of the substantial work still needed on the full range of the quota and other governance reforms," the IMF said in a communiqu issued at a meeting of its International Monetary and Financial Committee ( IMFC) in Washington Saturday.

A day earlier, G20 finance ministers and central bank governors meeting in Washington urged the IMF to deliver the reforms by the November Seoul summit.

On April 28, 2008, a large-scale quota and voice reform package was adopted by the IMF Board of Governors, with the aim of making quota more responsive to economic realities by increasing the representation of fast-growing economies and giving low-income countries more say in the IMF's decision-making.

The package called for, among other things, a new quota formula, ad-hoc quota increase to all 54 countries that were under- represented, tripling the number of basic votes to increase the voice of low-income countries, realigning quota and voting shares every five years. For the package to become effective, the approval of 112 member countries representing at least 85 percent of total voting power is required.

According to a report of the IMF's Executive Board to the IMFC, only 70 members, representing about 73 percent of voting power have accepted the package to date.

The communiqu pledged to complete the 14th quota review before January 2011.

The IMF carries out a quota review every five years. The last review was done in January 2008 with no proposals from the Board of Governors to increase quotas.

The communiqu also called for the acceleration of the IMF governance reform.

According to the final report of the Committee on IMF Governance Reform issued in March 2009, the reform involves the activation of a Council of ministers and governors to provide a forum for coordination and to take strategic decisions critical to global stability.

It will require the elimination of appointed chairs to allow for the reconfiguration of the composition of the Council and Executive Board to reflect economic reality. The reform also involves the adoption of a troika leadership model for the Council, with regular rotation, and agenda-setting by the leadership, with input from the Executive Board and management.

Other reforms include the adoption of "an open, merit-based and transparent process for the selection of IMF management," the diversification of staff by nationality, gender, education and experience. "None of these questions has a single right answer. Thus, we must strive for the best possible compromise," said IMF Managing Director Dominique Strauss-Kahn.

Source: Xinhua


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