Fourteenth General Review of Quotas - Realigning Quota Shares - Initial Considerations

Policy Papers, March 4, 2010

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Realigning quota shares is central to reform of Fund governance.
There is widespread dissatisfaction with the distribution of quota and voting shares, particularly the view that they no longer capture the growing role and importance of emerging market and developing countries (EMDCs).
This dissatisfaction is widely seen as undermining the Fund’s effectiveness and legitimacy.
An initial reform was launched in 2006 focused on realigning quota and voting shares.

A reform package agreed in early 2008 included:
- a new quota formula;
- an aggregate shift in quota shares totaling almost 5 percentage points for 54 members (mainly EMDCs);
- a 2.7 percent increase in voting share of EMDCs as a whole;
- a tripling of basic votes;
- an additional Alternate Executive Director for the largest member constituencies, currently the two Sub-Saharan African chairs.
The 2008 reform was seen as a first step; it was agreed that future general quota reviews, beginning with the 14th Review, would aim at further adjustments in quota shares to ensure that they reflect evolving economic weights.

Aim: further adjustments in quota shares to reflect evolving economic weights.
The Fourteenth General Review of Quotas is positioned as the next step following the 2008 package to address remaining distributional concerns.

Title: Fourteenth General Review of Quotas - Realigning Quota Shares - Initial Considerations
Date: March 4, 2010

Source: Fourteenth General Review of Quotas - Realigning Quota Shares - Initial Considerations (IMF web landing page).