The present quotas, based on a flawed formula with variables and weights chosen to produce a pre-determined result, do not reflect positions that are truly representative of many countries’ profile in the world economy. A new formula based on a transparent and objective set of criteria is needed.
In order to be truly representative of the size of economy and capacity to contribute to Fund resources, the chosen formula should assign maximum weights to GDP and reserves, and GDP should be computed on Purchasing Power Parity (PPP) terms.