The Imf Quota System - the Shift of Financial Power and the Role of Brics

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reforming the IMF quota system: the shift of financial power and the role of BRICS

TABLE OF CONTENTS

1. Abstract…………………………………………….................……..3 2. The International Monetary Fund…………………………………...3 3. The quotas system…..……………………………………………....3 4. Reforming the quota system: the role of BRICS……………………4 5. Conclusions……………………………………………...………….6 6. Bibliography…………………………………………...……………7 7. Webography…………………………………………………………7

Abstract

In this paper we briefly introduce the IMF organization, its governance based on the quota system and the reform of Gyeongju, Korea 2010. Then, we focus on the shift of global economic balances and on BRICS role at the G20 Summit of Los Cabos. We underline their request for implementation of the 2010 reform on representation and on voting shares for emerging countries. Finally we present some conclusions.

The International Monetary Fund

The International Monetary Fund (IMF) is an international organization of 188 countries, created on July 22, 1944 at the Bretton Woods Conference to rebuild national economies at the end of the Second World War. Its main tasks were to oversee the international monetary system in ensuring the exchange rate stability and to encourage members to eliminate exchange restrictions that hinder trade. More recently, since the spring of 2010, the IMF has largely focused its intervention on Europe, an idea that would have been unthinkable before the outbreak of the sovereign debt crisis that has threatened the euro. In April 2012, the IMF announced that it had raised at least 430 billion of dollars in extra lending capacity (bringing the total resources of the Fund at 750 billion dollars) to be used if the euro zone crisis worsens or global financial conditions deteriorate.

Governance at the IMF is largely determined by a quota system of allocating



Bibliography: • The International Monetary System, the IMF, and the G20 – A Great Transformation in the Making? – R. Samanas, M. Uzan and A. Lopez Carlos – ed. by Palgrave Mc Millan, 2007. • Challenges to the World Bank and IMF: Developing Country Perspective, ed. by A. Buira, 2003, for the G24 Research Program.

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