IMF rethinks its future
Wednesday 02 October 1996
It is now plain that there are some big new kids on the block. Up-and- coming countries such as Korea, because of its wealth, and China, because of its size, will without doubt become important economic powers. The question is how the Fund needs to evolve to recognise these new economic forces on the world stage.
The first step has been taken. The "new arrangements to borrow", the emergency source of funds created in response to the Mexican crisis, incorporates some of the new powers such as Korea, Malaysia and Singapore.
The next steps are under way, with the IMF's appeal to members for an increase in quotas. These are the member countries' shareholdings in the Fund. The IMF would like to use a quota increase to double its capital in a way that reflects countries' relative importance in the world economy.
Negotiations will go ahead in the hope that proposals can be put to a vote next year. But there are big question marks. One is what it will mean for the industrial countries. In particular, will the single currency mean the need for a single European voice at the IMF and what will that imply for Britain if it stays out?
Although there is no immediate threat to the UK's strong voice in the organisation, it looks sure to diminish over time - hence Mr Clarke's attempt to get some of his free market principles written into the IMF's list of objectives. More important, there is the issue of how countries with very different political cultures can be incorporated in a system of decision making that has always been based on a shared model of democracy. So far, the biggest difference in world view the institution has had to accommodate has been between that of the Germans and the Americans. But as the shadow hanging over next year's meeting in Hong Kong shows, inviting China and others to step into the boardroom could be fraught with difficulty.
- 1 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 2 Oil tanker with $100 million cargo goes missing off Texas coast
- 3 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 4 Lady al-Qa’ida: On the trail of Dr Aafia Siddiqui, the world’s most wanted prisoner
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
- < Previous
- Next >
iJobs Money & Business
Highly Attractive Salary: Austen Lloyd: BRISTOL - This is a very unusual law c...
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...