During the G-20 finance ministers meeting, officials took the opportunity to slam the IMF for failing to implement long overdue governance reforms.
The Group of 20 leading and developing nations reiterated its dissatisfaction over the pace of the International Monetary Fund’s governance reform and urged the United States to ratify an agreement that would provide broader representation to developing countries, a draft communique of G-20 finance ministers and central bank governors said Tuesday.
“We stay deeply disappointed over continued delays in progress of the IMF’s governance and quota allocation reforms agreed in 2010,” the document stated.
The United States has failed to make good on a reform
Currently, awaiting ratification in the U.S. Congress, the United States has failed to make good on a reform that if enacted would increase the size of the IMF’s core source of funding and increase the representation of emerging market and developing countries at the IMF in order to accurately reflect their weight in the global economy.
“Considering the importance of these reforms to keep trust for the IMF, its legitimacy and efficiency, we confirm that their quickest implementation remains a priority for the fund. We continue urging the United States to ratify the 2010 reform as soon as possible,” the draft communique said.
The changes to the voting shares, known as quotas, cannot proceed without the United States, which holds the only controlling share of IMF votes.
The IMF continues to be the target of global protests
Meanwhile, the IMF continues to be the target of global protests largely focused on economic justice, including opposition to austerity policies, such as public services cuts, reductions in labor rights, wages and working conditions.
According to a December 2013 study published by the Initiative for Policy Dialogue at Columbia University, which examined 843 protests across 84 countries occurring between January 2006 and July 2013, the IMF was the target of 20 percent of the total protests.
The survey also found that 25 percent of IMF protests occurred in high-income countries and 24 percent took place in low-income countries.
Source: G-20 Slams IMF Over Delayed Governance Reforms TeleSUR