IMF board defers decision on emerging countries' voting rights
13 Jun 2015
The board of governors of the International Monetary Fund (IMF) on Friday deferred by three months a decision on raising emerging countries' voting rights, as the United States continued to its tactics to stall reforms at the institution.
In light of continuing delays in the implementation of the 2010 quota and governance reforms (2010 Reforms), the board of governors had, in February 2015, adopted a resolution, which called on the executive board to expedite work on interim steps in the key of reforms, pending their full implementation, so as to enable the board of governors to reach agreement on reform steps by 30 June 2015.
The IMF's member countries had, in 2010, agreed to give more voting power to countries like China and India, double the fund's resources and reduce the dominance of Western Europe on its 24-member board.
But the Obama administration, which supports the reforms, has been unable to persuade the US Congress to pass funding changes necessary for the agreement. The United States can block the IMF reforms because it holds a controlling vote share.
To get around the United States, the IMF's board had proposed several "interim" plans to raise the voting rights of some emerging countries. They had set an end-June deadline to decide on an approach.
But in a statement on Friday, the board said it had pushed off its decision until the end of September and would implement any changes by mid-December.
In its report, the executive board noted that while progress has been made, more time was needed to build the necessary consensus among the membership to complete its work on interim steps. The report further noted that the executive board had reiterated its deep disappointment with the continued delay in the effectiveness of the 2010 reforms, and urged the United States to ratify them as soon as possible.
The report indicated that, if the 2010 Reforms are not ratified by 15 September 2015, the executive board will consider, prior to end-September, interim solution to complete its work on steps to implement the 2010 reforms as early as possible and no later than mid-December 2015.
The report noted that the executive board will continue to follow the guidance and directions provided by the IMFC and the board of governors on all other quota and governance-related matters.