The IMF’s Overlooked Revolution

This March, amid the latest twists and turns of the current financial crisis, a significant achievement went largely unnoticed: a decision by the executive board of the IMF that gives greater voice to its under-represented members, including emerging-market and developing countries.

Mexico City – As the turmoil swirling through global financial markets continues, there is a growing realization that global economic problems require global solutions and improved global governance. This March, amid the latest financial twists and turns, a significant achievement in this regard went largely unnoticed: an agreement by the executive board of the International Monetary Fund on a new quota formula and increases in quotas for under-represented members, particularly emerging-market and developing countries.

With that move, the IMF gave these countries a stronger voice in the main international organization charged with ensuring financial stability – and thus in the global economy itself. The decision, taken after nearly two years of highly technical and sometimes arcane negotiations, involved a set of measures that change the way quotas (which determine voting power in the IMF) are distributed.

Of course, at the end of the day, the total shift in voting power from developed to developing countries was only about 2.7%. So why is it important?

We hope you're enjoying Project Syndicate.

To continue reading, subscribe now.

Subscribe

Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.

http://prosyn.org/T0r8IEV;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.