The IMF has announced implementation of its long due quota reforms which was approved by the US Congress last year that will give more voting rights to emerging economies like India and China in the functioning of the organisation. The reforms by IMF represent a major step towards better reflecting in the institution’s governance structure, the increasing role of dynamic emerging market and developing countries. For the first time four emerging market countries (Brazil, China, India, and Russia) will be among the 10 largest members of the IMF.

The reforms also increase the financial strength of the IMF, by doubling its permanent capital resources to SDR 477 billion (about USD 659 billion). The IMF reforms that came into effect was approved by it in 2010, but was unable to implement it in the absence of its approval by the US Congress, which it did last year.

Other top 10 members include the US, Japan, and the four largest European countries (France, Germany, Italy, and the UK). Also for the first time, the IMF’s Board will consist entirely of elected Executive Directors, ending the category of appointed Executive Directors.

Currently the members with the five largest quotas appoint an Executive Director. The scope for appointing a second Alternate Executive Director in multi-country constituencies with seven or more members has been increased to enhance these constituencies’ representation in the Executive Board.