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J.F. Linn (2009) further stressed that the IMF’s reforms required
readiness by the U.S. and Europeans to forgo long-standing prerogatives and
strongly held positions, but action will help ensure early recovery from the 2008
global economic meltdown and the future capabilities of this institution, which
are needed to foster global financial stability and reduce global poverty.

Together, these three steps serve as a critical foundational
action to ensure that the IMF can stand ready to fight the immediate crisis, as
well as help prevent future crises from forming. (Linn, 2009)

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The reform transformed IMF’s Board of Directors from a
bureaucratic body to a high-level policy decision-making forum of ministers which
is among the measures that were proposed by a committee chaired by Trevor
Manuel, Minister of Finance of South Africa, which comprised a distinguished
cast of international experts and were endorsed by the G20 during the 2009
London Summit.

The J. F. Linn (2009) considered the third step as lesser
priority 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 of
the institution. The reform eliminated the dominant and veto of the U.S.
in key decisions and broaden the application of double-majority voting as to
increase the role of smaller members by introducing the merit-based selection
of the head of the IMF, irrespective of nationality. It would also
substantially revise the rule of quota and vote distribution to reflect
accurately and fairly the current and future economic weight of the members.

The G20 faces a few immediate priorities related to the
IMF: First, G20 leaders should agree to triple IMF resources from the
current level of $250 billion to $750 billion to help meet the financing needs
of developing countries. This is critical because the World Bank has estimated
that these countries may face a shortfall of up to $700 billion in 2009
alone. Second, G20 leaders should request that the IMF monitor and report
transparently on the commitments and implementation of G20 national stimulus
plans and efforts to repair their banking sectors. Third, G20 leaders should
commit to a far-reaching reform of the IMF by 2010. (Linn, 2009)

Among the G20 task during 2009 London Summit addressing the 2008
Global Economic and it future occurrence there should be reform in some leading
global institutions, the IMF was among those key global institutes that are
needed to be reform in order to prevent the occurrence of future crisis. Reform
of the IMF is more urgent both in the short and medium term while reform of the
World Bank, although equally important, is less pressing.

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