IMF's 14th General Review of Quotas

On December 15, 2010, the Board of Governors, the IMF's highest decision-making body, approved a package of far-reaching reforms of the Fund’s quotas and governance, completing the 14th General Review of Quotas. This will be implemented once 3/5ths of the IMF members comprising 85% of the quota-share approve it. Once implemented, it will result in a major realignment of quota shares to better reflect the changing relative weights of the IMF’s member countries in the global economy.

The 14th General Review of Quotas will:

1. unprecedented 100 percent increase in total quotas: double quotas from approximately SDR 238.4 billion to approximately SDR 476.8 billion.
2. shift more than 6 percent of quota shares from over-represented to under-represented member countries.
3. shift more than 6 percent of quota shares to dynamic emerging market and developing countries (EMDCs).
4. significantly realign quota shares. China will become the 3rd largest member country in the IMF, and there will be four EMDCs (Brazil, China, India, and Russia) among the 10 largest shareholders in the Fund, and
5. preserve the quota and voting share of the poorest member countries. This group of countries is defined as those eligible for the low-income Poverty Reduction and Growth Trust (PRGT) and whose per capita income fell below US$1,135 in 2008 (the threshold set by the International Development Association) or twice that amount for small countries.

India's quota share at the IMF will increase from 2.44 per cent to 2.75 per cent, making it the 8th largest quota holding country at the IMF.

Significantly, India's gain in terms of quota share is the 7th largest in 14th round of quota review.

In absolute terms, New Delhi's quota will increase from SDR (special drawing right) 5,821.5 million to SDR 13,114.4 million.

All the BRIC (Brazil, Russia, India and China) countries would now be among the 10 largest quota shareholders at the IMF. 

The reform package builds on the 2008 reforms, which became effective on March 3, 2011. The 2008 reforms:

• strengthen the representation of dynamic economies, many of which are emerging market countries, through ad hoc quota increases for 54 member countries, and 
• enhanced the voice and participation of low-income countries through a near tripling of basic votes.

Source: http://www.imf.org/external/np/exr/facts/quotas.htm
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