The 80th anniversary of Bretton Woods has brought forth many proposals on how the International Monetary Fund (IMF) should change to respond to emerging economic and financial challenges and to a very different geopolitical context. A common theme across these proposals is that the IMF can only remain relevant, effective, and legitimate in a fast-changing world if it is able to make major changes to both the substance of its work and the way it is governed.
The table with background notes available here is intended to provide an easy reference document to the variety of IMF reform proposals in circulation from commentators and stakeholders. The reforms are summarized under the broad headings of Governance, IMF Resources and Lending, Debt, SDR Allocations and Usage, and Surveillance.
For each reform proposal, the table notes:
- its purpose or rationale
- its links to other reform measures (e.g., a new lending facility may require more resources via a quota increase)
- the political hurdles to its adoption (e.g., voting majorities in the IMF, changes to the IMF’s Articles of Agreement or entrenched interests).
Whatever the merits of these proposals, the table serves to underline the challenge of implementing significant reforms. A common theme is that key reforms can only come about if there is agreement among the major shareholders of the institution. However, the increasingly strained relationship among these shareholders is one of the key issues that is seen as making the IMF less effective. Nevertheless, our hope is that this simple taxonomy of proposed reforms may assist stakeholders in considering a way forward. For example, by highlighting the degree of “ambition” or “realism” of each proposal, the table may help in formulating a trajectory of reforms under each broad heading, starting with elements that could be attained in the short term, and perhaps help in building a consensus for more challenging or fundamental reforms over a longer horizon.
IMF reform will be a long process. If there is sufficient interest, we plan to update this table periodically to reflect new proposals or others that have not been covered. Please let us know.
Access the table of reform proposals here.
CGD blog posts reflect the views of the authors, drawing on prior research and experience in their areas of expertise.
CGD is a nonpartisan, independent organization and does not take institutional positions.