The Contestation of the IMF

Abstract

Few international organizations wield as much political authority over nation states, and provoke substantial political controversies, as does the International Monetary Fund (IMF). This chapter investigates the extent to which rising powers in the global economy, notably Brazil, Russia, India, China, and South Africa (BRICS), contest the IMF’s policies and rules. Do they express a general discomfort with its economic policy paradigm, or do they seek to improve their position within the institution and extend their influence over it? In a quantitative analysis of statements during the meetings of the International Monetary and Financial Committee over time, the chapter finds that both rising and established powers contest the IMF to a comparable extent. Yet, the BRICS’ contestation behaviour differs qualitatively from that of the major advanced economies. While the latter demand institutional reforms, the former strongly criticize institutional procedures and rules. The BRICS most strongly contest the issue of their institutional representation in the IMF’s quota-based decision-making system and the Fund’s (neo)-liberal policy paradigm does not seem to play an important role in that behaviour.