IMF A Joke

Posted by Daniel Workman Jan 29, 2007

In his article Global stage no longer a reflection of reality in the January 29, 2007 edition of the Toronto Star, David Crane explains that emerging markets now constitute 50% of the world economy. However, this fact is not reflected in the representation and voting powers of the International Monetary Fund (IMF).

Consider some examples.

The European Union, America, Japan, Canada, Australia and New Zealand own 60% of IMF votes. China has less voting power than Belgium combined with the Netherlands. Equally laughable is the fact that Canada has 2.89% of IMF votes, far more than India.

To its credit, the IMF is striving to reallocate voting powers. This necessary epiphany is likely to be a long, painful process because countries with an abundance of votes will fight having to give them up.