The g20 proposal on imf governance: Has any progress been made?

Intereconomics

Volumn 45, Issue 3, 2010, Pages 171-179

  Menkhoff, Lukas ^a   Meyer, Reeno ^a  

^a LEIBNIZ UNIVERSITY HANNOVER   (Germany)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 77953690969     PISSN: 00205346     EISSN: 1613964X     Source Type: Journal    
DOI: 10.1007/s10272-010-0333-8     Document Type: Article

References (54)

1. G20 participants are 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and USA) plus one representative of the current EU Council presidency; meetings are also attended by further representatives.
2. These summits were held in Washington, DC (USA) in November 2008, in London (UK) in April 2009 and in Pittsburgh (USA) in September 2009. The next summit is scheduled for June 2010.
3. G20: The Global Plan for Recovery and Reform, G20 Final Communiqué, London April 2, 2009.
4. See e.g. Robert J. Barro, Jong-Wha Lee: IMF programs: Who is chosen and what are the effects?, in: Journal of Monetary Economics, Vol. 52, No. 7, 2005, pp. 1245-1269.
5. Cf. Graham Bird: The IMF: A bird's eye view of its role and operations, in: Journal of Economic Surveys, Vol. 21, No. 4, 2007, pp. 683-745.
6. Cf. G20: Leaders' Statement: The Pittsburgh Summit, Pittsburgh, PA September 24-25, 2009, No. 21.
7. Cf. G20: Declaration on delivering resources through the international financial institutions, Annex to Final Communiqué, London April 2, 2009, p.1.
8. Cf. G20: The Global Plan for Recovery and Reform, G20 Final Communiqué, London April 2, 2009, No.20, and G20: Leaders' Statement: The Pittsburgh Summit, Pittsburgh, PA September 24-25, 2009, No.21.
9. The Singapore quota and voice reform consists of several elements that will be explained in detail in Section (4); cf. G20: The Global Plan for Recovery and Reform, G20 Final Communiqué, London, 2 April 2009, No. 20.
10. G20: Leaders' Statement: The Pittsburgh Summit, Pittsburgh, 24-25 September 2009, No. 21.
11. 11 Ibid., p. 3.
12. IMF: IMF Quotas, Factsheet, Washington, DC, Oct. 2009.
13. IMF: Articles of Agreement of the International Monetary Fund, Washington, DC, 1993, Art.III §2(a).
14. Trevor Manuel: Committee on IMF Governance Reform - Final Report, Washington, DC, 24 March 2009, p. 14.
15. Historically, the World Bank's presidency is held by an American while the IMF's managing director is a European.
16. Cf. G20: Leaders' Statement: The Pittsburgh Summit, Pittsburgh, 24- 25 September 2009, No. 21; and G20: The Global Plan for Recovery and Reform, G20 Final Communiqué, London, 2 April 2009, No. 20.
17. Cf. G20 Working Group 3: Reform of the IMF - Final Report, 4 March 2009, No. 28.
18. Cf. Joseph E. Stiglitz: Report of the Commission of Experts of the President of the United Nations General Assembly on Reforms of the International Monetary and Financial System, United Nations, New York, 21 September 2009, p. 95.
19. Cf. Trevor Manuel: Committee on IMF Governance Reform - Final Report, Washington, DC. March 24, 2009, No.34.
20. Cf. IEO: Governance of the IMF: An Evaluation, Independent Evaluation Office, Washington, DC. 2008, No.84.
21. Cf. Edwin M. Truman: Overview on IMF reform, in: Edwin M. Tru- man (ed.): Reforming the IMF for the 21st Century - Special Report 19, Peterson Institute, 2006, pp.78-80. In preparation for the G20 summits, several groups were formed, including the G20 Working Group 3 directly appointed by G20 finance ministers, the Issing Committee established by the German government, the de Larosière High-Level group assigned by the European Commission, and the Manuel Committee that was put in place by the IMF's managing direc- tor Strauss-Kahn.
22. Cf. Michael Kläsgen: Der letzte Europäer, in: Sueddeutsche Zei-tung, 29 September 2007.
23. 20: Leaders' Statement: The Pittsburgh Summit, Pittsburgh, 24-25 September 2009, No. 21.
24. IMF: Reform of IMF Quotas and Voice: Responding to Changes in the Global Economy, in: Issues Brief, 01/08, 2008, p. 1.
25. Cf. IMF: IMF Executive Board Recommends Quota and Related Governance Reforms, IMF Press Release No. 06/189, 2006.
26. Cf. IMF: Quota and Voice Reform - Key Elements of a Potential Package of Reforms, Statistical Appendix, and Summing of the Board Meeting, Washington, DC, 26 February 2008, p. 12.
27. Cf. IMF: Reform of IMF Quotas and Voice: Responding to Changes in the Global Economy, in: Issues Brief, 01/08, 2008.
28. Cf. IMF: World Economic Outlook Database - WEO Groups and Ag- gregates Information, available at http://www.imf.org/external/pubs/ft/weo/2009/02/weodata/groups.htm#oem [accessed 11/11/2009].
29. IMF: Reform of IMF Quotas and Voice: Responding to Changes in the Global Economy, in: Issues Brief, 01/08, 2008.
30. Cf. ibid., p. 2.
31. 31 Ibid.
32. Cf. Andrea Colabella, Enrica Di Stefano, Claudia Maurini: The reform of IMF quotas: the way towards the 2008 resolution, in: Questioni di Economia e Finanza (Occasional Papers) - Banca D'Italia, No. 24, 2009, pp. 15-16.
33. Cf. Agnès Bénassy-Quéré, Sophie Béreau, Yvan Decreux, Christophe Gouel, Sandra Poncet: IMF quotas at year 2030, CEPII Working Paper, Vol. 2007-12, 2007, p. 15.
34. Cf. Graham Bird, Dane Rowlands: IMF quotas: Constructing an international organization using inferior building blocks, in: Review of International Organizations, Vol. 1, 2006, p. 157.
35. Cf. Abbas Mirakhor, Iqbal Zaidi: Rethinking the governance of the International Monetary Fund, in: J.M. Boughton, D. Lombardi (eds.): Finance, Development and the IMF, Oxford et al. 2009, p. 284.
36. Cf. Graham Bird, Dane Rowlands: IMF quotas: Constructing an international organization using inferior building blocks, in: Review of International Organizations, Vol. 1, 2006, p. 169.
37. Cf. David P. Rapkin, Jonathan R. Strand: Reforming the IMF's weighted voting system, in: The World Economy, Vol. 29, No. 3, 2006, pp. 313-314.
38. Barry Eichengreen: A blueprint for IMF reform: More than just a lender, in: International Finance, Vol. 10, No. 2, 2007, pp. 153-175.
39. Alan Meltzer: A blueprint for IMF reform: What is worth retaining?, in: International Finance, Vol. 10, No. 2, 2007, pp. 177-182.
40. Cf. Bessma Momani: Proposing IMF reforms for low-income countries, in: J.M. Boughton, D. Lombardi (eds.), op. cit., p. 249.
41. Cf. Joseph E. Stiglitz: Report of the Commission of Experts of the President of the United Nations General Assembly on Reforms of the International Monetary and Financial System, United Nations, New York, 21 September 2009, p. 94.
42. Ibid.
43. Trevor Manuel: Committee on IMF Governance Reform - Final Report, Washington, DC, 24 March 2009, p. 14.
44. Cf. IMF: IMF Governance - Summary of Issues and Reform Options, International Monetary Fund, Washington, DC, 1 July 2009, pp. 15-18.
45. Lorenzo Bini Smaghi: IMF governance and the economy of a consolidated European seat, in: Edwin M. Truman (ed.): Reforming the IMF for the 21st century, Special Report 19, Peterson Institute, 2006, pp. 233-255.
46. Cf. Bessma Momani: Proposing IMF reforms for low-income countries, in: J.M. Boughton, D. Lombardi (eds.), op. cit., p. 250.
47. This is the percentage point differences between the current CQS value and the actual current quota share.
48. Andrea Colabella, Enrica Di Stefano, Claudia Maurini: The re- form of IMF quotas: the way towards the 2008 resolution, in: Questioni di Economia e Finanza (Occasional Papers) - Banca D'Italia, No. 24, 2009, p. 9.
49. Cf. IMF: IMF Quotas, Factsheet, Washington, DC, October 2009.
50. Cf. IMF: IMF Executive Board Recommends Quota and Related Governance Reforms, IMF Press Release No. 06/189, 2006.
51. Cf. IMF: Consents to the Proposed Amendments of the Articles of Agreement (29 Jan. 2010), available at http://www.imf.org/external/np/sec/misc/consents.htm [accessed 02/02/2010].
52. These are Argentina, Brazil, Indonesia, Russia, Saudi Arabia, South Africa and Turkey.
53. See Michael Frenkel, Lukas Menkhoff: An analysis of competing IMF reform proposals, in: Intereconomics, Vol. 35, No. 3, 2000, pp. 107-113.
54. Cf. Carsten Hefeker: Inadequate IMF reform, in: Intereconomics, Vol. 41, No. 5, 2006, pp. 238-239.