Showing posts with label decision making within IMF. Show all posts
Showing posts with label decision making within IMF. Show all posts

Monday, 14 December 2015

Who Controls the IMF?


The International Monetary Fund (IMF, or Fund) is governed by its member countries. Its daily business is conducted by a 24-member Executive Board, its directors representing countries, or groups of countries. Importantly, at the IMF, not all countries are the same – instead, so-called weighted voting governs the Fund. The “weight” of a country is determined by its economic importance, depending on variables like GDP, trade, and reserves of foreign currency. The resulting vote share of the United States, the single largest shareholder of the Fund, exceeds 17 percent. Japan and Germany follow, with around 6 percent each, then the United Kingdom and France with each around 5 percent of the voting weight. Most decisions at the Fund have to be taken with a majority of more than 50 percent (though formal votes are rarely taken), giving these few countries a substantial say in decision-making at the Fund.