Policy Papers

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

Publication Date:

March 4, 2010

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Realigning quota shares is central to reform of Fund governance. Dissatisfaction with the distribution of quota and voting shares--in particular the view that they no longer capture the growing role and importance of emerging market and developing countries (EMDCs)--is widely seen as undermining the Fund’s effectiveness and legitimacy. In response, an initial reform was launched in 2006 focused on realigning quota and voting shares. The 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, and 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 and 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.

Series:

Policy Papers

Subject:

Committee of the Whole on the Review of Quotas Developing countries Emerging markets Fourteenth General Review of Quotas Quota calculations Quota distribution Quota formulas Quotas Voting power