| The present discussions around IMF quotas may well reveal internal inconsistencies between the three purposes of the quotas: determine the financial contribution of each member country to the Fund, its access to Fund resources, and its voting rights. If the IMF is to find a new legitimacy as a co-ordinator of the global economy away from its traditional role of financial assistance, then deep changes in quota formulas would be appropriate, such as the inclusion of population in the formulas and the subsequent exclusion of variability and foreign exchange reserves. We provide illustrative projections of present and alternative quota formulas at the year 2030. There is little the Eurozone can do against a decline in its calculated quota share of at least 6 percentage points at this horizon. Excluding intra-Eurozone payments (consistent with a single seat at the IMF) would involve an additional 3 percentage point drop. |
Abstract |
