J.F. Linn (2009) further stressed that the IMF’s reforms requiredreadiness by the U.S. and Europeans to forgo long-standing prerogatives andstrongly held positions, but action will help ensure early recovery from the 2008global economic meltdown and the future capabilities of this institution, whichare needed to foster global financial stability and reduce global poverty.Together, these three steps serve as a critical foundationalaction to ensure that the IMF can stand ready to fight the immediate crisis, aswell as help prevent future crises from forming.
(Linn, 2009)The reform transformed IMF’s Board of Directors from abureaucratic body to a high-level policy decision-making forum of ministers whichis among the measures that were proposed by a committee chaired by TrevorManuel, Minister of Finance of South Africa, which comprised a distinguishedcast of international experts and were endorsed by the G20 during the 2009London Summit.The J. F. Linn (2009) considered the third step as lesserpriority to the global leaders as they are facing global economic crises (recession),believed that IMF must be reformed in order to restore the legitimacy and effectiveness ofthe institution. The reform eliminated the dominant and veto of the U.S.in key decisions and broaden the application of double-majority voting as toincrease the role of smaller members by introducing the merit-based selectionof the head of the IMF, irrespective of nationality.
It would alsosubstantially revise the rule of quota and vote distribution to reflectaccurately and fairly the current and future economic weight of the members.The G20 faces a few immediate priorities related to theIMF: First, G20 leaders should agree to triple IMF resources from thecurrent level of $250 billion to $750 billion to help meet the financing needsof developing countries. This is critical because the World Bank has estimatedthat these countries may face a shortfall of up to $700 billion in 2009alone.
Second, G20 leaders should request that the IMF monitor and reporttransparently on the commitments and implementation of G20 national stimulusplans and efforts to repair their banking sectors. Third, G20 leaders shouldcommit to a far-reaching reform of the IMF by 2010. (Linn, 2009)Among the G20 task during 2009 London Summit addressing the 2008Global Economic and it future occurrence there should be reform in some leadingglobal institutions, the IMF was among those key global institutes that areneeded to be reform in order to prevent the occurrence of future crisis. Reformof the IMF is more urgent both in the short and medium term while reform of theWorld Bank, although equally important, is less pressing.