Editor’s Note: This chapter is from Regional and Global Liquidity Arrangements, published by the German Development Institute and edited by Ulrich Volz and Aldo Caliari.
It is no secret that the governance of the International Monetary Fund (IMF) does not match economic reality and that the vote shares of emerging market countries do not reflect their economic strength. If the IMF does not make its governance more inclusive, it will (continue to) lose the support of emerging market countries. But if the power of the United States and Western Europe is diluted, they may be less inclined to support the IMF with additional funding in the future. Perhaps this is the signature of a multipolar world, where no one is strong enough to dominate at the international level – and regional hegemons emerge. If this is so, one potential solution for the Fund is to recognise the growing strength of regional organisations and find ways to engage and work with them.