The growing importance of the Asian Infrastructure Investment Bank (AIIB) as it prepares for launch this year prompted calls for IMF governance structure reform at a meeting of G20 finance ministers and central bank governors in Washington on Apr. 17.
Foreign news outlets suggested the battle for leadership in the IMF poses a potential threat to its dollar-denominated currency system. –english.hani.co.kr
Many researchers are expecting market volatility and crisis by years’ end, thus the scheduled G20 November 15 – 16, 2015 Summit should be marked on your calendar. ~Ron
PDF file: Trapped in history – IMF and the US veto
“The Spring Meetings in the IMF and the World Bank start on 17 April 2015. Once again, member countries are compelled to discuss ways to overcome the longstanding gridlock in IMF governance reforms. Professor Robert Wade (LSE and DIIS) and Senior Researcher Jakob Vestergaard (DIIS) provide an up-to-date account of the increasingly desperate situation. Global economic governance is at risk, they argue, if long-overdue IMF governance reforms are not ratified. At the end of the day, it is the US veto that hinders these reforms, and the much-needed doubling of the Fund’s secure lending resources, from taking effect:
The IMF is desperately short of secure lending resources. The US Congress is blocking ratification of an agreement reached in 2010 by all member states that would almost double the Fund’s permanent or guaranteed lending resources. The US is the only country with the ability to veto major decisions. The Fund is currently relying on the good will of countries to increase its fire-power in an ad hoc way. This is not a solid foundation for the world’s main lender of last resort to governments.” –diis.dk
G20 discusses plans to sidestep U.S. on IMF reforms -Reuters
“The Group of 20 leading economies on Friday discussed ways to raise emerging countries’ voting rights at the IMF as part of an effort to move past U.S. foot-dragging on reforms to the institution, but they failed to reach an agreement.
The IMF’s member countries agreed in 2010 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 U.S. Congress to pass funding changes necessary for the agreement. The United States can block the IMF reforms because it holds a controlling share of votes.”