IMF governance reforms are a good first step, but more are needed

FIVE years after the International Monetary Fund (IMF) quota and governance reforms were mooted at the G-20 economic summit in Seoul, the US Congress finally adopted legislation to authorise these reforms last week.

This authorisation comes not a moment too soon. In the time that has been lost, US clout and influence in the international financial system has suffered some erosion. That erosion could continue unless even more governance reforms are put in place, and at both the IMF and the World Bank - which have dominated global multilateral finance in the post World War II era.

The main elements in the IMF governance reforms are: