An IMF governance reform deal agreed in November 2010 (see Update 73) has been stalled by US Congress’ failure to grant it approval. The deal, which gives emerging markets greater voting shares as well as requiring that all IMF board members be democratically elected, will not pass until at least November as Congress is now in recess for the US elections. As the US has 17 per cent of IMF votes, the deal cannot pass without US approval, ensuring that the original mid October deadline will be missed. Charles Kenny of the Washington think tank Centre for Global Development claimed “the threat of losing worldwide economic dominance has left the US too scared to engage constructively in building up global institutions”.
EarthRights International examines how the Jam v. IFC case has helped to shift the landscape of accountability for international financial institutions by successfully challenging their claim to “absolute” immunity in US courts, potentially opening IFC up to further legal challenges in future.
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