Note: The following article is taken from the Chinese-language "Commentaries on International Affairs".

The International Monetary Fund (IMF) announced its decision on Tuesday to immediately start the process of selecting its next managing director after Christine Lagarde announced her resignation as head of the organization. With the IMF facing the pivotal moment of the 15th General Review of Quotas, whoever takes over the position should actively push forward with quota and governance reforms and continue to increase the voice and representation of emerging market and developing countries, in order to help the IMF maintain its legitimacy and effectiveness.

[File photo: IC]

As a major legacy of the U.S.-led Bretton Woods system, the IMF was designed to promote international monetary cooperation, provide loans and assistance to member countries, and secure international financial stability. But the global economic landscape has changed significantly since the beginning of the new century. On the one hand, fast-rising emerging economies are making a growing contribution to global growth. On the other hand, the existing global governance system is struggling to alleviate global imbalances, facilitate multilateral trade agreements, or address sovereign debt crises. Under these circumstances, it's natural that reform of the IMF would give a greater voice to emerging market and developing countries.

Lagarde has made great progress in pushing forward IMF reforms since taking the leadership of the organization in 2011. In 2016, the package of reforms developed in 2010, which had long been obstructed by the United States, finally went into effect. As part of these reforms, some 6 percent of the quota of shares shifted to under-represented developing countries. China's voting shares went up to rank third from sixth place. The voting shares of India, Russia, and Brazil also increased. Advanced European countries reduced their board representation by two chairs, and the executive board now consists solely of elected members.

But the organization's voting shares and governance still don't objectively reflect the changes to the structure of the global economy. Advanced countries remain dominant in the IMF, and the United States, despite only representing about 20 percent of the world economy, still wields the unique power to veto major policy decisions. This is despite the fact that emerging markets and developing countries account for half of the world's GDP and over 80 percent of global growth.

The fact that the voting shares don't match the economic status of the member countries diminishes the representation of emerging economies and developing countries, and reflects poorly on the objectivity and legitimacy of the IMF. That's why the fund's acting managing director David Lipton said the IMF "cannot expect to retain the global reach and resources" it needs "unless countries gaining in economic importance and ready to take on commensurate responsibility gain appropriately in their say at the fund."

If the IMF is to remain relevant, respond more effectively to crises, maintain global financial stability, and advance global economic governance, it needs to adapt to the changing global economic landscape and ensure that voices outside of the advanced nations are fairly heard.