1. In completing the Fourteenth General Review of Quotas (hereafter the “Fourteenth Review”) and approving the proposed Amendment on the Reform of the Executive Board (hereafter the “Board Reform Amendment”), the Board of Governors requested the Executive Board to bring forward the timetable for completion of the Fifteenth General Review of Quotas (hereafter the “Fifteenth Review”) to January 2014.1 The Board of Governors noted that any realignment was expected to result in increases in the quota shares of dynamic economies in line with their relative positions in the world economy, and hence likely in the share of emerging market and developing countries as a whole. The Board of Governors also requested that steps be taken to protect the voice and representation of the poorest members. The Executive Board was also requested to complete a comprehensive quota formula review by January 2013.2 These forward-looking elements were part of an agreed package of 2010 quota and governance reforms (hereafter the “2010 Reforms”).
2. In January 2014 and again in January 2015, the Executive Board reported to the Board of Governors that the initiation of its work on the Fifteenth Review had been delayed in order to facilitate the implementation of the 2010 Reforms.3 The Board of Governors expressed its deep regret that the Fourteenth Review and the Board Reform Amendment had not become effective and, in February 2015, called for the completion of the Fifteenth Review in line with previous Executive Board understandings, and by December 15, 2015 as mandated under the Articles of Agreement.4
3. On December 15, 2015, the Executive Board notified the Board of Governors that the work on the Fifteenth Review had been delayed because the 2010 Reforms had not yet been implemented. It was noted that, as a result, the Executive Board would not be able to complete its work on the Fifteenth Review by the above deadline and would report to the Board of Governors before end-January 2016 on the status of the Fifteenth Review and proposed next steps.
4. The Executive Board is pleased to report that on January 26, 2016 the Board Reform Amendment entered into force, which will allow the quota increases under the Fourteenth Review to become effective.5 Accordingly, it is expected the Fund’s quota resources will double as members pay in their quota increases, strengthening the Fund’s ability to support its membership.
5. With the implementation of the 2010 Reforms, the Fund’s governance structure will also better reflect members’ changing positions in the world economy, while protecting the voice and representation of the poorest members. The reforms include a shift in quota and voting shares, the move to an all-elected Executive Board, and a commitment to reduce the number of Executive Directors representing advanced European countries by two, no later than the first regular election of Executive Directors after the general conditions for the effectiveness of the Fourteenth Review quota increases have been met.
6. The Executive Board urges the remaining members who have not yet consented to their quota increases under the Fourteenth Review to do so expeditiously, and the members who have consented to their quota increases to make their quota payments in a timely manner.
7. The Executive Board notes that completion of a general quota review requires an assessment on the adequacy of quotas of members in the Fund.6 The Executive Board has not yet formed a view on the adequacy of quotas in the context of the Fifteenth Review. Consistent with the approach taken in past cases of a delay in meeting the deadline under the Articles (i.e., the Sixth, Ninth, and Tenth General Reviews of Quotas), the Executive Board proposes that the Board of Governors continue the Fifteenth Review and request that the Executive Board work expeditiously in line with previous Executive Board understandings with the aim of completing the review by the 2017 Annual Meetings, taking into account that sufficient time will be needed to build the necessary consensus.7
8. The Executive Board reiterates its agreement that achieving broad consensus on a new quota formula will best be done in the context of the Fifteenth Review, and that the discussions on this issue will be integrated into and move in parallel with the discussion on the Fifteenth Review.8
9. Against this background, the Executive Board proposes that the Board of Governors adopt a Resolution: (i) welcoming the entry into force of the Board Reform Amendment on January 26, 2016, which will allow the quota increases under the Fourteenth Review to become effective; (ii) urging the remaining members who have not yet consented to the Fourteenth Review quota increases to do so without further delay and urging the members who have consented to their quota increases to make their quota payments in a timely manner; (iii) expressing regret at the delay of the Fifteenth Review, continuing the Fifteenth Review under Article III, Section 2(a), and calling on the Executive Board to work on the Fifteenth Review expeditiously in line with previous Executive Board understandings, with the aim of completing the Fifteenth Review by the 2017 Annual Meetings; and (iv) requesting that the Executive Board report on progress on the Fifteenth Review to the Board of Governors by the 2016 Annual Meetings and the 2017 Spring Meetings.