Why it Matters Who Runs the IMF and the World Bank-Updated October 2003
AbstractIncreasing integration has made the great challenge of reducing poverty and advancing human development more achievable than ever, and more dependent than ever on good global economic governance. In this paper I set out the economic logic for why good global economic governance matters for reducing poverty and inequality in the world, and then develop several arguments for how better representation of developing countries in the IMF, the World Bank, and other multilateral institutions would make those institutions more effective in that task. The arguments include the long-run viability of new financing of the institutions, and their effectiveness in managing the political economy challenges of using conditionality. To illustrate the possible link between better representation and effectiveness, I discuss the example of the Inter-American Development Bank, where the developing country borrowers control 50 percent of the votes and the Presidency. I close with a discussion of the dilemma of reconciling the need for sustaining the financial and political support of the rich country members of these global institutions, with stronger poor country representation to ensure their long-run legitimacy and effectiveness.
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Bibliographic InfoPaper provided by Center for Global Development in its series Working Papers with number 22.
Length: 35 pages
Date of creation: Jan 2003
Date of revision:
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Web page: http://www.cgdev.org
multilateral organizations; integration; poverty; human development;
Find related papers by JEL classification:
- F35 - International Economics - - International Finance - - - Foreign Aid
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-03 (All new papers)
- NEP-FMK-2006-09-03 (Financial Markets)
- NEP-PKE-2006-09-03 (Post Keynesian Economics)
- NEP-SEA-2006-09-03 (South East Asia)
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- Rapkin, David P. & Strand, Jonathan R., 2005. "Developing country representation and governance of the International Monetary Fund," World Development, Elsevier, vol. 33(12), pages 1993-2011, December.
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