Necessary reforms to the quota-allocation formula at the International Monetary Fund and the voting-rights system at the World Bank will likely be difficult and time-consuming. In the meantime, these institutions' boards of directors can and should be modernized, in line with best practices in corporate governance.
WASHINGTON, DC – Efforts to reform the Bretton Woods institutions – the International Monetary Fund and the World Bank – are progressing, albeit slowly. In December, the IMF Board of Governors approved a 50% increase in member quotas, which will reduce its reliance on borrowed resources, and the World Bank has released an ambitious “evolution roadmap,” which sets a path toward modernizing its mission, business model, and funding. But while these are welcome developments, they are not enough. Reforming these institutions’ governance structures is crucial.
WASHINGTON, DC – Efforts to reform the Bretton Woods institutions – the International Monetary Fund and the World Bank – are progressing, albeit slowly. In December, the IMF Board of Governors approved a 50% increase in member quotas, which will reduce its reliance on borrowed resources, and the World Bank has released an ambitious “evolution roadmap,” which sets a path toward modernizing its mission, business model, and funding. But while these are welcome developments, they are not enough. Reforming these institutions’ governance structures is crucial.