Call to CSOs to Participate in Fourth Pillar Consultation on IMF Governance Reform – New Rules for Global Finance Coalition


NewsProgram UpdatesCall to CSOs to Participate in Fourth Pillar Consultation on IMF Governance Reform

Call to CSOs to Participate in Fourth Pillar Consultation on IMF Governance Reform

Dear Friends and Colleagues,

There have been many calls recently for IMF governance reform—whether from the G20 or the draft outcome document of the UN Conference on the Outcomes of the Financial Crisis.

Now, you—and all members of global Civil Society—are invited to contribute to the discussion, a discussion that will feed directly in to the IMF itself. The IMF Managing Director, Mr. Dominique Strauss Khan, called for a “Fourth Pillar”on IMF Governance Reform.

The IMF Managing Director, during a consultation with Washington-based CSOs, with groups from London and Malawi linked by phone and video, asked New Rules to facilitate the outreach to CSOs, and to coordinate feedback. We are happy to do so. Now the rest is up to you!

Let me explain the content and the process for this CSO Consultation on IMF Governance, as agreed between New Rules and IMF.

First, the content:

It is what you make it. There is no limit or outline for content. The Managing Director said explicitly: “Nothing is taboo.”

  • We encourage you to review and reflect on the “Purposes of the IMF” as contained in the Articles of Agreement (copied below) as you consider your submission(s) on IMF governance.
  • For your information, New Rules considers Accountability to be a core element of governance.
  • “Governance” is definitely broader than the quota formula to determine voice and vote, and the method of selecting the Managing Director

Second, the process:

  • Target Dates: There are two main target dates for submitting ideas and materials:
    • Mid-July: a paper on IMF Governance is being written for Board consideration, beginning in mid-July, for discussion in mid-August. CSOs should have basic principles and recommendations organized for submission by mid-July, so the authors can incorporate CSO ideas. New Rules will coordinate the submission, based on what has been submitted; or anyone can submit directly to the IMF.
      • The expected format for the interim report will be: 1) Executive Summary; 2) Background; 3) Statement of Principles; 4) Recommendations.
    • September 1: New Rules will contract an independent author to write a “CSO report on IMF Governance” for consideration by all IMF Governors and Executive Directors (EDs) in the lead-up to the October 6-7, 2009 Annual Meetings in Istanbul, Turkey.
      • This paper will identify points of consensus; as well as catalog the diverse range of views submitted;
      • IMF EDs and Governors will have access to all documents and views submitted, unless the author(s) request anonymity.
      • The findings will be presented at a side-event in Istanbul.
  • Interactive-website: There will be an interactive website where CSOs can submit materials and offer feedback. To facilitate moderation by New Rules, the inter-active website likely will not be part of the IMF website. (To be announced.)
  • Video-conferences: Civil Society individuals and organizations in developing countries are especially urged to organize their own discussions; they may be invited by the local IMF Resident Representative to come to a meeting to share their views;
    • We will organize a limited number (5?) of video-conferences with developing countries, using World Bank in-country, or other, facilities.
    • If you would like to coordinate your country or region for a video-conference, please let me know ASAP.
  • Translation: While the principal language of the report will be English, the IMF has offered to translate a reasonable number of submissions in other languages, and to translate the reports.
  • Dissemination: Both the interim and the final CSO reports will be posted on the IMF website, and will be available for electronic dissemination by all CSO participants. New Rules sees dissemination as a core element of its responsibilities.
  • Editing: The content of this process will come from CSOs; it will be managed by CSOs. Draft versions of both the interim and final report will be distributed as widely as possible, but especially to all CSOs who have contributed to the debate up to that point. The writing and editing of the report is wholly in the hands of New Rules.
  • Deletions: In posting material to the web, the deletions that we can anticipate now will include:
    • Names of those who prefer to remain anonymous (Anonymous material can be submitted electronically to the IMF, at a separate email address, or to New Rules, at a separate email address (separate email addresses to be announced);
    • Any personal attacks; and
    • Profanity
  • Weekly summaries: When there is considerable “traffic on the web, there will be a week’s summary posted and distributed by email.

Please let me know if you have suggestions for improving the process. But most important, please send your ideas, recommendations—in any form, long or short; complete ideas or just lists. You can call or email directly if that is preferable. This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 202-277-9390.

I look forward to working with you on this project. Let’s produce a truly great product!

Sincerely,

Jo Marie Griesgraber, Executive Director,  This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Articles of Agreement of the International Monetary Fund

Article I – Purposes

The purposes of the International Monetary Fund are:

(i) To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems.

(ii) To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.

(iii) To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation.

(iv) To assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade.

(v) To give confidence to members by making the general resources of the Fund temporarily available to them under adequate safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity.

(vi) In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.

The Fund shall be guided in all its policies and decisions by the purposes set forth in this Article.

4th Pillar, IMF Governance