Centre for Economic Research of RISS presents a report

In January, 2016 the IMF reform agreed in 2010 under the G20 Seoul Summit was formally adopted.According to the results of the reform, the cumulative quota for emerging and developing countries (EMDCs) has acquired 38,7 per cent, with an increase of 2,1 percentage points (36,6 per cent previously). Along with it, the Seoul Action Plan implied further growth of EMDCs representation by amending the quota formula and taking the 15th General Quota Review upon that. However, at present time, after dangers caused by the global financial crisis have passed, advanced economies with the US at the forefront are trying to obstruct the new quota formula negotiation process and to downgrade the quota significance. Within this framework, BRICS and other EMDCs should stand for tangible quota formula review in order to prevent it from turning into formality.

Current quota distribution order should be transformed drastically on the basis of a clear and fair mechanism which is to be worked out. This makes possible for EMDCs to take position in the IMF governance structure relevant to their actual weight in the global economy. Expert community of the BRICS member countries should be also engaged in this process to work out scientific justification of all changes being proposed.

Starting the discussion, this research paper introduces a new pattern of using quota formula variables. The report’s authors invite experts from the BRICS member countries and other EMDCs to express their views on the questions raised.