The 2008 Quota and Voice Reforms of the International Monetary Fund (IMF) entered into force Thursday, representing an important milestone to reinforce IMF legitimacy.
The reform provides for quota increases for 54 countries, with the largest gains going mainly to dynamic emerging market countries, ranging from Korea, China and Turkey, to Brazil and Mexico.
The reform will also enhance the influence of low-income countries in the IMF’s decision-making, including in its 24-member Executive Board, according to a statement released by the Washington-based international institution.
Following calls by IMF Managing Director Dominique Strauss-Kahn for member countries to formally ratify the agreement, which was backed by the IMF’s Governors in April 2008, the package has now been signed into law in 117 member countries, representing 85.04 percent of total voting power in the IMF.
This pushes the package above the required 85 percent majority of voting power and approval by at least 113 member countries, which are needed for approval of these types of reforms. – PNA