CIAO DATE: 02/2014
December 2013
Danish Institute for International Studies
DIIS researchers Jakob Vestergaard and Robert Wade have published a Policy Brief on the crisis of IMF governance reforms and its troubling implications for global economic governance: “More than three years after the International Monetary Fund (IMF)’s governing body agreed to reform the organization’s governance so as to better reflect the increasing economic weight of dynamic emerging market economies in the world economy, only microscopic changes have been made. Emerging market and developing countries (EMDCs) have become increasingly frustrated with Western states for clinging to their inherited power, in the IMF and other important international economic governance organizations. The emerging cooperation among the BRICS (Brazil, Russia, India, China, South Africa) – as seen in the advanced-stage negotiations to establish a Development Bank and a Contingent Reserve Arrangement –sends a “wake up and smell the coffee” call to the West, and the latter will carry a heavy responsibility for eroding global multilateral governance if it continues to drag its heels on the needed adjustments”.
Resource link: The West must allow a power shift in international organizations [PDF] - 135K