No. 54 - reform of IMF quotas: the way towards the 2008 resolution

by Andrea Colabella, Enrica Di Stefano and Claudia Maurini
September 2009
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In April 2008 the International Monetary Fund approved a resolution which modified its quotas and voting power . The goal was to realign, at least in part, the voting power of IMF member countries with their relative weight and role in the world economy, while ensuring better representation for the poorest ones. This paper guides the reader through the complicated process that led to the final outcome, exploring both the technical aspects of the reform and the underlying political motivations. In particular, we discuss the functions of IMF quotas and their evolution in an historical perspective. We talk about the inadequacy of the former distribution of voting power and, therefore, the need for the reform. We also analyze several technical aspects debated during the negotiations. Finally, we assess the effectiveness of the resolution in achieving the proposed goals. We conclude that the approved outcome represents a first step in the right direction. Nevertheless, some issues remain unresolved and will need to be addressed in the future.

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  1. 28 September 2009
    No. 54 - reform of IMF quotas: the way towards the 2008 resolution
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