[afro-nets] African EDs call for Europe to help block resolution on IMF quotas and voice

["Claudio Schuftan" <claudio@hcmc.netnam.vn>]

African EDs call for Europe to help block resolution on IMF quotas and voice
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From: "David Woodward" <David.Woodward@neweconomics.org>

Please forward as quickly as possible - IMF Board votes tomorrow morning (Washington time). Any support greatly appreciated.

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URGENT
from: Jeff Powell jpowell@brettonwoodsproject.org
Date: mar. 29/08/2006 19:47
African EDs call for Europe to help block resolution on IMF quotas and voice

We got a leaked copy of a draft resolution on IMF quota and voice reform (pages 1 - 11) and, importantly, a letter from African Executive Directors (page 12) announcing rather remarkably that they will vote against the resolution at the board meeting on Thursday, and are calling on other directors to do the same.  (In IMF board etiquette, if you're REALLY angry, you abstain!)

What has the African EDs so upset?  The issue of basic votes has been relegated to secondary status.  These are the votes that all countries get allocated regardless of their economic size - it's as close as the Fund gets to recognising the equality of sovereign nations.  The draft resolution proposes that the basic votes issue not be dealt with until after both two rounds of ad hoc quota increases and a review of the quota formula.  The latter is a very thorny issue, and could take a very long time to resolve. In the meantime, Africans would see their share of the votes at the Fund get even smaller than they now are.

The resolution approval process is convoluted at best.  Only a majority of the Executive Board has to agree on Thursday that the resolution should be sent to the Board of Governors for a final decision.  So - unless there is a mass revolt - the resolution will go to the Board of Governors.  However, there will be no opportunity for debate amongst the political ministers on the Board of Governors - as the resolution is to be approved by super-majority (85%) without a meeting.  The resolution will be sent to them, and they will have to indicate their support (or not) before 18 Sept. The three African constituencies have 6.88% between them, so they will need at least two other major countries (or constituencies) to join them to kill the proposal.

What can we do?  First of all, we should pressure our governments for their position on this issue.  Please share any intelligence with this list. Second, any media work would help to ensure that this decision is made in the open.  Last year, you'll remember that we helped to embarrass the European constituencies who were trying to roll back gains on the debt cancellation deal.  This is an excellent opportunity to show solidarity with the African nations, and to highlight our proposals for more fundamental Fund governance reform.

A reminder that the governance statement which many of you signed on is at (and is available in French, Spanish, Italian, and German):

- European CSO statement on governance reform of the IMF
http://brettonwoodsproject.org/art.shtml?x=539161
- nb. UK CSO statement on governance reform of the IMF
http://brettonwoodsproject.org/art.shtml?x=540737

--
Claudio Schuftan
mailto:claudio@hcmc.netnam.vn