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IMF asserts it is transparent
Dubai, Oct 05: International Monetary Fund has defended itself against claims that it lacks transparency, saying there are checks and balances in its governance to evenly distribute the gains amongst member countries.
Dubai, Oct 05: International Monetary Fund has defended itself against claims that it lacks transparency, saying there are checks and balances in its governance to evenly distribute the gains amongst member countries.
"The manner in which member countries interact with the IMF and in which the executive board, the managing director and the staff work together in conducting the IMF's business are key elements in its governance, but they are not always understood or seen to be transparent," it says.
Effective governance of IMF requires that the benefits and burdens of membership should be equitably distributed among the participants, says the report titled "governance of the IMF, decision making, institutional oversight, transparency and accountability". There are views that the United States and other industrialised countries call the shots at IMF, notes the report.
"In one view, the major industrial countries, led by the US impose their will on the rest of the membership because they are the majority stockholders of the IMF."
The report said though US through the size of its quota share obtained veto powers over some key decisions, these veto powers can also be exercised by groups of other members who together hold the requisite voting power. Citing an example, it said in 1994 the developing nations blocked a proposal by the major industrial countries for an allocation of special drawing rights that they regarded as unsatisfactory.
Bureau Report
Effective governance of IMF requires that the benefits and burdens of membership should be equitably distributed among the participants, says the report titled "governance of the IMF, decision making, institutional oversight, transparency and accountability". There are views that the United States and other industrialised countries call the shots at IMF, notes the report.
"In one view, the major industrial countries, led by the US impose their will on the rest of the membership because they are the majority stockholders of the IMF."
The report said though US through the size of its quota share obtained veto powers over some key decisions, these veto powers can also be exercised by groups of other members who together hold the requisite voting power. Citing an example, it said in 1994 the developing nations blocked a proposal by the major industrial countries for an allocation of special drawing rights that they regarded as unsatisfactory.
Bureau Report