BRICS proposes new governance at the IMF with more power for developing countries.
NDB document advocates ending the post-war "gentlemen's agreement," increasing quotas for emerging countries, and giving women a greater role.
247 - In a document released this Saturday (5), in Brasília, the New Development Bank (NDB) presented the “Rio de Janeiro Vision for IMF Quota and Governance Reform”, prepared by the Finance Ministers and Central Bank Presidents of the BRICS countries. The proposal seeks a profound overhaul of the International Monetary Fund (IMF) governance system, with greater participation of emerging and developing economies (EMDEs) in the institution’s decisions and leadership.
The text reaffirms the BRICS countries' commitment to multilateralism, but criticizes the current structure of the IMF, which still reflects an obsolete model of global power centered on developed economies. "The Fund's governance structure needs to keep pace with the rapid evolution of the world economy," the signatories state.
Among the main points of the proposal is the revision of the contribution quotas and voting power of member countries, which still do not reflect the real economic weight of emerging market and developing economies (EMDEs). The countries argue that the IMF should remain a quota-based institution, with quotas defining both the capacity for financial contribution and decision-making power, but that these quotas should be recalculated based on indicators such as GDP at purchasing power parity (PPP).
Another key aspect is strengthening the Fund's own resources, reducing dependence on temporary mechanisms such as New Arrangements to Borrow (NAB) and bilateral loan agreements. The group also calls for the urgent implementation of the 16th General Quota Review (GRQ) and proposes accelerating the 17th GRQ with the adoption of a new, fairer and more transparent formula.
The vision also represents a break with the tradition of appointments at IMF summits. BRICS proposes ending the post-war "gentlemen's agreement," whereby the US appoints the president of the World Bank and the Europeans the managing director of the IMF. The group suggests creating a new position of deputy managing director from emerging economies and demands a greater presence of professionals from these countries at intermediate management levels. The document also emphasizes the need to increase the role of women in the institution's senior management.
“Quotas should reflect the relative positions of members in the global economy and cannot be realigned at the expense of the poorest countries,” states the document, which will be formally delivered to the IMF President, Kristalina Georgieva, and the Chairperson of the International Monetary and Financial Committee (IMFC), as a proactive contribution from BRICS to the global debate.
At the end of the text, the group expresses support for the spirit of international collaboration, mentioning the Diriyah Declaration, and commits to working together to ensure that future IMF reviews include significant structural reforms capable of promoting a fairer, more inclusive, and representative financial order.
