Establishment of the Interim Committee
- International Monetary Fund
- Published Date:
- February 1996
The Interim Committee of the Board of Governors on the International Monetary System (Interim Committee) was established on October 2, 1974 under a parallel composite resolution†adopted by the Boards of Governors of the Fund and the World Bank at the Twenty-Ninth Annual Meetings, in Washington. The Committee was expected to serve as a high-level advisory body after the Committee of Twenty ceased to exist and until such time as amendments to the Articles of Agreement, which were to include provision for a permanent Council of Governors, were approved and a Council was established. The amended Articles, which included a provision for a Council of Governors, came into force on April 1, 1978. However, at the time this History was being completed, at the end of 1984, the Council had not yet been established, and the Interim Committee was continuing to meet.
Composite Resolution on the Work of the Ad Hoc Committee on Reform of the International Monetary System and Related Issues and on a Program of Immediate Action (October 2, 1974)
Second Resolution (No. 29-8): Establishment of an Interim Committee of the Board of Governors on the International Monetary System
Whereas the Committee of the Board of Governors of the International Monetary Fund on Reform of the International Monetary System and Related Issues has referred to the desirability of establishing by amendment of the Articles of Agreement a permanent and representative Council with appropriate powers; and
Whereas it is desirable, pending the establishment of the Council, to establish an Interim Committee of the Board of Governors on the International Monetary System with an advisory role, and with a composition similar to that of the Council; and
Whereas it is desirable that the Interim Committee shall come into existence when the Committee on Reform of the International Monetary System and Related Issues ceases to exist;
Now, therefore, the Board of Governors hereby resolves as follows:
1. Composition of the Interim Committee
(a) There shall be established an Interim Committee of the Board of Governors on the International Monetary System. The members of the Committee shall be governors of the Fund, ministers, or others of comparable rank. 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
(i) one member of the Committee, and not more than
(ii) seven associates.
Each member of the Committee and each associate shall serve until a new appointment is made.
(b) Members of the Committee, associates, and executive directors or in their absence their alternates, shall be entitled to attend meetings of the Committee, unless the Committee decides to hold a more restricted session. Each member of the Fund that appoints an executive director and each group of members of the Fund referred to in (a) above may designate an alternate to participate in the place of the member of the Committee at any meeting when he is not present. Participation in respect of each item on the agenda of a meeting shall be limited to one person, who shall be a member of the Committee, an associate, or an executive director.
(c) The Committee shall select a Chairman, who shall serve for such period as the Committee determines. The Chairman of the Board of Governors, or a governor designated by him, shall convene the first meeting of the Committee and shall preside over it until a Chairman has been selected.
(d) The Managing Director shall be entitled to participate in all meetings of the Committee, and may designate a representative to participate in his place at any meeting when he is not present. The Managing Director or his representative may be accompanied normally by not more than two members of the staff, unless the Committee decides to hold a restricted session.
2. Representation of Members Not Entitled to Appoint a Member of the Committee
A member of the Fund not entitled to appoint a member of the Committee may send a representative to participate in any meeting of the Committee when a request made by, or a matter particularly affecting, that member is under consideration. The Committee shall determine, upon request by the member, whether a matter under consideration particularly affects the member.
3. Terms of Reference
The Committee shall advise and report to the Board of Governors with respect to the functions of the Board of Governors in:
(i) supervising the management and adaptation of the international monetary system, including the continuing operation of the adjustment process, and in this connection reviewing developments in global liquidity and the transfer of real resources to developing countries;
(ii) considering proposals by the Executive Directors to amend the Articles of Agreement; and
(iii) dealing with sudden disturbances that might threaten the system.
In addition, the Committee shall advise and report to the Board of Governors on any other matters on which the Board of Governors may seek the advice of the Committee.
In performing its duties, the Committee shall take account of the work of other bodies having specialized responsibilities in related fields.
(a) The Committee shall meet ordinarily three or four times a year. The Chairman may call meetings after consulting the members of the Committee, and shall consult the members of the Committee on calling a meeting if so requested by any member of the Committee.
(b) A quorum for any meeting of the Committee shall be two thirds of the members of the Committee.
(c) Meetings of the Committee shall be held within the metropolitan area in which the Fund has its principal office, or at such other places as the Committee may provide or, in the absence of such provision, as the Chairman shall determine after consulting the members of the Committee.
(d) Appropriate arrangements shall be made for the effective coordination of the work of the Committee and of the Executive Directors. The Secretary of the Fund shall serve as the Secretary of the Committee.
(e) 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 shall be made available to the Executive Directors.
(f) The Committee may invite observers to attend during the discussion of an item on the agenda of a meeting, and may determine any aspect of its procedure that is not established by this Resolution.
The resolutions formally ending the Committee of Twenty (No. 29-7) and setting out other immediate steps (No. 29-10) are reproduced above, pp. 207-10. The resolution establishing the Development Committee (No. 29-9) is reproduced below, pp. 575-78.