Council Special Report on International Monetary Fund Reform

Author: Peter B. Kenen, Adjunct Senior Fellow for International Economics
June 2006 - May 2007

In April 2006, the managing director of the International Monetary Fund made a set of proposals aimed at enhancing the legitimacy and efficiency of the Fund and involving it more directly in the resolution of large imbalances involving the major economies. Some of his proposals were endorsed at the 2006 Annual Meetings of the Fund, and others are being implemented by the Fund's Executive Board. The most important reforms involve a redistribution of IMF quotas, which determine, among other things, voting power in the Fund. This Council Special Report provides a brief history of the Fund, stressing the changes that have occurred as a great many developing countries, large and small, have joined the Fund. It strongly endorses most of the managing director's proposals, although it criticizes others, including the way that the managing director would have the Fund involve itself in resolving major international financial imbalances. It argues that the United States should strongly support measures to enhance the legitimacy of the IMF because the United States cannot readily accomplish unilaterally what the Fund can accomplish multilaterally.

Meetings

Advisory Committee

Council Special Report on International Monetary Fund Reform: Second Advisory Committee Meeting

Speaker:

Peter B. Kenen, Senior Fellow in International Economics, The Council on Foreign Relations

Chair:

Jeffrey R. Shafer, Vice Chairman, Global Banking, Citigroup Inc.
February 7, 2007 3:30-5:00 p.m.

This meeting is not for attribution.

Advisory Committee

Council Special Report on International Monetary Integration: First Advisory Committee Meeting

Presider:

Peter B. Kenen, Senior Fellow for International Economics, The Council on Foreign Relations

Speaker:

Jeffrey R. Shafer, Vice Chairman, Global Banking, Citigroup Inc.
October 18, 2006

This meeting is not for attribution.