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IMF History (1972-1978) Volume 3
Chapter

Establishment of the Committee of Twenty

Author(s):
International Monetary Fund
Published Date:
February 1996
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On July 26, 1972, the Board of Governors of the Fund adopted the following resolution establishing the ad hoc Committee on Reform of the International Monetary System and Related Issues (Committee of Twenty) to negotiate a reformed international monetary system.

Establishment of a Committee on Reform of the International Monetary System and Related Issues

(July 26, 1972)

Resolution No. 27-10 of the Board of Governors

Whereas there is an urgent need for a thorough review and reform of the international monetary system in the light of major international developments over the last several years; and

Whereas reform of the international monetary system should be considered in relation to existing or prospective arrangements among countries, including those involving international trade, the flow of capital, investment, or development assistance, that could affect attainment of the purposes of the Fund under the present or amended Articles; and

Whereas the reform should meet the present and future needs of the world economy; and

Whereas in order to bring about the necessary reform it is desirable to establish a committee, composed of governors of the Fund, ministers, or others of comparable rank, to advise and make recommendations to the Board of Governors; and

Whereas it is generally recognized that decisions relating to the reform should be taken with the full participation of both developed and developing member countries;

Now, therefore, the Board of Governors hereby resolves that:

1. Composition of the Committee

(a) There shall be established an ad hoc Committee of the Board of Governors on Reform of the International Monetary System and Related Issues. The members of the Committee shall be appointed by the members of the Fund. Each member of the Fund that appoints an executive director and each group of members of the Fund that elected an executive director on or after the date on which the last regular election took place shall appoint one member of the Committee, who shall serve until a new appointment is made. Each member of the Committee shall appoint not more than two associates, who shall be entitled to participate in meetings of the Committee. If a member of the Committee does not attend a meeting of the Committee, he shall be entitled to designate another person to take his place at that meeting.

(b) The members of the Committee shall select a Chairman, who shall serve for such period as the Committee determines. The Chairman of the Board of Governors shall convene the first meeting of the Committee and shall preside over it until a Chairman has been selected.

(c) The Committee shall determine the number of advisors that each member of the Committee may bring to its meetings.

(d) The Managing Director shall participate in the meetings of the Committee and may designate a representative to take his place at any meeting he does not attend.

2. Terms of Reference of the Committee

(a) The Committee shall advise and report to the Board of Governors with respect to all aspects of reform of the international monetary system, including proposals for amendments of the Articles of Agreement of the Fund, taking into consideration any reports and recommendations by the Executive Directors to the Board of Governors pursuant to Resolution No. 26-9 of the Board of Governors.

(b) In considering and reporting on the matters covered by (a) above, the Committee shall give full attention to the interrelation between these matters and existing or prospective arrangements among countries, including those that involve international trade, the flow of capital, investment, or development assistance, that could affect attainment of the purposes of the Fund under the present or amended Articles.

3. Deputies

(a) There shall be established the Deputies, who shall be composed of the deputies appointed by the members of the Committee, and who shall meet as often as necessary to prepare the work of the Committee. Each member of the Committee shall be entitled to have not more than two deputies.

(b) The Committee shall select the Chairman of the Deputies.

(c) Executive directors shall be entitled to participate in the meetings of the Deputies.

(d) The Managing Director shall designate not more than two members of the staff of the Fund to represent him at meetings of the Deputies.

(e) The Deputies shall determine the number of advisors who may attend the meetings of the Deputies.

4. Arrangements for Work

(a) The Managing Director and the Chairman of the Deputies shall establish appropriate arrangements to bring about an effective coordination of the work of the Executive Directors in connection with reform of the international monetary system pursuant to Resolution No. 26-9 and the work of the Deputies.

(b) The Chairman of the Committee or of the Deputies, after consulting the members of the Committee or the deputies as the case may be, shall make any arrangements that are considered necessary for studies by qualified persons or for furthering the work of the Committee or of the Deputies in any other way.

5. Procedures

(a) The Committee shall meet as often as is necessary for proceeding with its work. Meetings shall be convened by the Chairman after consulting the members of the Committee. The Chairman shall consult the members of the Committee if so requested by any member of the Committee.

(b) Meetings of the Committee and of the Deputies shall be held within the metropolitan area in which the Fund has its principal office or at such other places as the respective Chairmen determine after consulting the members of the Committee or the deputies as the case may be.

(c) In reporting any recommendations or views of the Committee, the Chairman shall seek to establish a sense of the meeting. In the event of a failure to reach a unanimous view, all views shall be reported, and the members holding such views shall be identified. Reports of the Committee or of the Deputies shall be made available to the Executive Directors. The Committee may publish any of its reports.

(d) The Committee and the Deputies may invite other persons to attend meetings and may determine any other aspect of their own procedures that is not established by this Resolution.

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