Proposed IMF Quota Reforms “Won’t Benefit Developing Countriesâ€, says Leading Developing Country Representati
Source: Third World Network
The current proposals for reform at the International Monetary Fund (IMF) will not bring about benefits for the majority of its developing-country members, nor will they restore the Fund’s credibility or improve its efficacy as a multilateral financial institution, according to a leading developing- country representative at the IMF.
In an article published in the upcoming issue of the Journal for International Economic Law, Hector Torres, an Alternate Executive Director of the IMF, and representative of the Group of 24, said that the “quota and voice†reform process launched at the IMF in September 2006 is unlikely to redress the dysfunctional nature of the Fund’s governance structure or correct the power imbalances which lead to its ineffectiveness in both its regulatory as well as lending roles.
The reform process launched in Singapore in September 2006 is not likely to help the Fund to recover credibility or improve efficiency, writes Torres. Referring to the discussions to revise the quotas allocated to IMF members, Torres commented: “At the Board, we are just tinkering with the variables used in the current flawed quota formula and preparing ourselves to horse-trade on the weight that should be given to those that better accommodate narrow national interests.
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