8/31/2016 IMF Survey : Historic Reforms Double Quota Resources and Enhance Voice of Emerging and Developing Economies

IMF Survey : Historic Reforms Double Quota Resources and

Enhance Voice of Emerging and Developing Economies
IMF Survey

January 27, 2016

Quota and governance reforms agreed in 2010 are approved

Package strengthens influence of emerging markets
Approval paves the way for 15th review

The 2010 IMF quota and governance reforms that took effect yesterday will strengthen the voice and
representation of emerging and developing economies in the institution; reinforce the legitimacy of its
decision-making process; and equip it with more permanent resources to better respond to future crises.

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Read the press release

Watch the video
U.S. congressional approval
2010 quota reform in a nutshell
IMF quota and governance reform: For
the first time, four emerging market Factsheet: IMF Quotas
countries (Brazil, China, India, and Factsheet: How the IMF Makes
Russia) will be among the 10 largest
members of the IMF. (photo: IMF flags) Decisions

“I commend our members for ratifying these truly historic reforms,” IMF Managing Director Christine
Lagarde said. She noted that a more representative, modern IMF will ensure that the institution is able to
better meet the needs of its members in a rapidly changing global environment.

“Today marks a crucial step forward and it is not the end of change as our efforts to strengthen the IMF’s
governance will continue,” Lagarde added.

Significance of quota and governance reforms

This historic change marks an important step forward for the IMF.

First, the reforms significantly increase the IMF’s quota resources and its ability to respond to crises more
effectively. The combined quotas (or the capital countries contribute) of the IMF’s 188 members will increa

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8/31/2016 IMF Survey : Historic Reforms Double Quota Resources and Enhance Voice of Emerging and Developing Economies

to a combined SDR 477 billion (about US$659 billion) from about SDR 238.5 billion (about US$329 billio

Second, they also improve the Fund’s governance by better reflecting the increasing role of dynamic
emerging and developing countries in the global economy. More than 6 percent of quota shares will shift to
dynamic emerging market and developing countries and also from over-represented to under-represented
IMF members. As a consequence, four emerging market countries (Brazil, China, India, and Russia) will b
among the 10 largest members of the IMF. Other top 10 members include the United States, Japan, and t
four largest European countries (France, Germany, Italy, and the United Kingdom).

The 2010 agreement will also enhance the effectiveness of IMF’s decision-making, including in its 24-
member Executive Board. For the first time, the IMF’s Board will consist entirely of elected Executive
Directors, ending the category of appointed Executive Directors (currently the members with the five large
quotas appoint an Executive Director).

At the same time, the quota shares and voting power of the IMF’s poorest member countries will be
protected. Moreover, advanced European countries have committed to reduce their combined Board
representation by two chairs by the next regular election of Executive Directors that will take place this fall.

Next Steps

These reforms reflect major shifts in the global economy. The 2010 reforms—which built on reform steps i
2008 and followed extensive consultations involving member governments and outside stakeholders—tak
into account the changing realities of the global economy, and notably the growing weight and role of dyna
emerging and developing economies.

The ratification of the 2010 reforms also clears the way for the Fund to begin the 15th review of its quotas.
The 15th review will provide an opportunity to discuss the size and composition of IMF resources and the
distribution of quota shares among the Fund’s membership.

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