IMF reshuffle

Meeting in Singapore this week, the IMF and world finance ministers have approved changes in the fund's voting structure. The stated purpose of the reshuffling is to give developing economies a greater say and more voting power in the fund. The largest benificiaries of this move will be China, South Korea and Turkey.

These changes were met with opposition by a group led by Brazil, Argentina, Egypt and India, who collectively released a statement saying

"The position is clearly unacceptable as it further erodes the credibility and legitimacy of the IMF. The disturbing picture that emerges is that some developing countries will be given increases by reducing shares of some other equally deserving countries."

While creating an equatable voting structure is obviously important for a democratic institution, there remain much greater issues to address. Over the last 5 years the global economy has for the most part been stable, meaning the IMF has been idle. The IMF should seek to renew its mission and develop a plan in which it can play a part in stimulating further growth in developing economies rather than just playing the role of lender of last resort.