CMI and IMF, a thought.

Apparently the G20 has made some break-thru with IMF reform.

One idea, which I read here , suggests that the EU should take a single seat at the IMF rather than have country level representation. Doing so would mean that the IMF would have to be based in Europe, as the law establishing the Fund states.

This would be in exchange for the western european powers giving up their over-representation at the Fund, a patently unfair situtation arrising from historical circumstance and now threatening the legitmacy of the Fund as a whole. Of course, the beneficiaries of a redistributation would be Asian nations. And, in the face of the WFC, keeping the Asian countries in, and invovled, at the Fund is very sensible.

A good idea perhaps, and not beyond the bounds of international law. However, the article further suggested that if the Asians did not like this arrangements they could go and formally establish the CMI.

But infact IMF reform would reduce the chances of the CMI ending its 20% link the IMF. In fact, the whole raison d'etre of the CMI comes crashing down if the Asian nations are granted better access to the Fund and its decision making processes. One might even interpret the CMI as a call for precisely such reform, a call for help. (Of course, there is more going on).