IMF Voting Power Heavily Skewed Against Developing Regions: Report

Sub-Saharan Africa, South Asia, and Southeast Asia hold only about one-quarter of the International Monetary Fund’s (IMF) voting power relative to the share their populations warrant, according to a global inequality report that calls for a fundamental overhaul of how the institution’s decisions are made. The findings are part of new report dubbed ‘The Global Justice Report: A Plan for Equality & Prosperity Within Planetary Boundaries’, published by the World Inequality Lab. Comparing IMF voting rights in 2025 with regional population shares, the report reveals that Europe, North America, and Oceania hold roughly four times the voting power their population shares would justify under a population-based system. Consequently, the current structure grants each inhabitant of those regions roughly 16 times more voting power than an individual in Sub-Saharan Africa or South and Southeast Asia. The report proposes transitioning from the current IMF voting formula to a population-based allocation, either immediately or via a gradual shift completed by 2050. Under this model, voting shares would progressively adjust to ensure equal voting power per person worldwide. Additionally, the study proposes a double-majority system for a newly envisaged Global Justice Fund, requiring regular budgetary support from 55 percent of countries representing at least 60 percent of the world’s population. These proposals coincide with ongoing IMF discussions regarding its quota system ahead of the 17th General Review of Quotas—a process that could directly influence Ethiopia’s standing within the institution. Speaking at a recent press briefing launching the IMF’s Regional Economic Outlook Update for Sub-Saharan Africa, IMF African Department Director Zeine Zeidane noted that Ethiopia’s strong economic growth over the past two decades could work to its advantage if quotas are realigned. “Ethiopia is a bit different from others, because Ethiopia has been really growing fast over the past decade or two,” Zeine said. “If there is a new formula, it’s likely that Ethiopia will be one of those benefiting from quota alignment and otherwise.” The IMF’s current quota formula, established in 2008, weighs gross domestic product at 50 percent, economic openness at 30 percent, economic variability at 15 percent, and international reserves at five percent. These quotas dictate members’ financial contributions, voting power, and access to funding. Although the 16th quota review concluded in December 2023 with a 50 percent increase in total quotas, it preserved existing relative shares, leaving the 17th review as the primary vehicle for potential realignment. Meanwhile, the Group of 24 developing countries continues to advocate for a framework that reflects modern economic realities while safeguarding smaller and poorer members. In a separate development, Ethiopia is preparing to assume a key leadership role on the World Bank’s board. During the World Bank Group and IMF Annual Meetings in Bangkok, Thailand, Ethiopia was elected Alternate Executive Director for Africa Group One, a constituency representing 22 African nations on the World Bank Executive Board. The appointment of Sandokan Debebe to represent Ethiopia and the wider constituency was confirmed by national bank governors of member countries, with his term scheduled to begin on November 1, 2026. Africa Group One comprises Angola, Botswana, Burundi, Eritrea, Eswatini, Ethiopia, The Gambia, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia, Rwanda, São Tomé and Príncipe, Seychelles, Sierra Leone, Somalia, South Sudan, Sudan, Tanzania, and Uganda. This milestone marks only the third time an Ethiopian official has held a senior board leadership position at the World Bank, following Bulcha Demeksa (1972–1974) and Mulu Ketsela (2006–2008).