27 January 2016: A 2010 amendment to the International Monetary Fund’s (IMF) Articles of Agreement has entered into force, making four emerging market countries (Brazil, China, India, and Russia) among the ten largest IMF members for the first time (along with the US, Japan, France, Germany, Italy, and the UK). The Board Reform Amendment is part of a package of quota and governance reforms, which also includes doubling IMF quotas and a “major shift” in quota shares towards emerging markets and developing countries, according to the IMF.

The reforms aim to better reflect, in the Fund’s governance structure, the increasing role of emerging markets and developing countries. The Amendment creates an all-elected IMF Executive Board, which ends the category of appointed Executive Directors, the IMF notes. Currently, the members with the five largest quotas appoint an Executive Director. The reforms also double the Fund’s permanent capital resources to SDR 477 billion (about US$659 billion). The quota increases are expected to come into effect in the coming weeks.

Christine Lagarde, IMF Managing Director, said the reforms ensure that the Fund will be able to “better meet and represent the needs of its members in a rapidly changing global environment.” She stressed that the IMF’s efforts to strengthen its governance will continue.

The 2010 Quota and Governance reforms were approved by the IMF’s Board of Governors in December 2010, and are built on an earlier set of reforms that were approved by the Governors in April 2008.

The main outcomes of the 2010 Quota Reforms include: more than 6% of quota shares will shift to dynamic emerging market and developing countries, and also from over-represented to under-represented IMF members; 13 constituencies, including both African constituencies, become eligible to appoint an additional Alternate Executive Director; and advanced European countries have committed to reduce their combined Board representation by two chairs. [IMF Press Release] [IMF Press Release – Quota and Governance Reforms Approved (2010)] [IMF Press Release – Quota and Voice Reforms Approved (2008)] [Quota Increases by Country] [IMF Press Release on US Congress’ Authorization of Reforms, December 2015]