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Rethinking the Governance of the International Monetary Fund

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  • Mr. Abbas Mirakhor
  • Mr. Iqbal Mehdi Zaidi

Abstract

This paper attempts to set out the principal issues that need to be resolved in formulating a proposal for quotas and voice reform in the IMF that could command broad support. Following John Rawls, we argue that "justice is the first virtue of social institutions," and we use his theory of justice to provide a method for understanding what should be the case, in the context of voice and voting shares, before international institutions, such as the IMF, are to be justifiable to their members. The implementation of this process suggests, among other things, that a major revision of the quota formulas is long overdue, and leaving this unaddressed raises serious questions regarding the IMF's governance which could develop into a core mission risk and jeopardize the relevance of the institution.

Suggested Citation

  • Mr. Abbas Mirakhor & Mr. Iqbal Mehdi Zaidi, 2006. "Rethinking the Governance of the International Monetary Fund," IMF Working Papers 2006/273, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2006/273
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    References listed on IDEAS

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    Cited by:

    1. David P. Rapkin & Jonathan R. Strand & Michael W. Trevathan, 2016. "Representation and Governance in International Organizations," Politics and Governance, Cogitatio Press, vol. 4(3), pages 77-89.
    2. Nguéma-Affane, Thierry, 2008. "The Principal Components Approach To Quota Formulation At The Imf," MPRA Paper 7618, University Library of Munich, Germany.
    3. Michał Jurek, 2009. "Propozycje modyfikacji mechanizmu wyznaczania kwot krajów członkowskich Międzynarodowego Funduszu Walutowego," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 89-113.
    4. Mr. Arvind Virmani, 2011. "Global Economic Governance: IMF Quota Reform," IMF Working Papers 2011/208, International Monetary Fund.
    5. Daud Vicary Abdullah & Hossein Askari & Abbas Mirakhor, 2015. "The moral foundation of collective action against economic crimes," PSL Quarterly Review, Economia civile, vol. 68(272), pages 9-39.

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