Jamaica Agreement

December 11, 2020 at 8:43 am

Finally, many technical changes to the articles were approved by the Executive Directors. While they do not fundamentally affect international monetary relations, they will significantly strengthen the Fund`s activities. One of the characteristics that can strengthen SDRs is that after the amendment, it can be used by mutual agreement among participants without the current formal “necessity requirement.” This brings SDRs closer to real money and can therefore have some influence on the system as a whole, although it is not enough, far from it, to make SDRs the “main asset of the system”. Another feature of the technical amendments is the much broader application of enabling clauses that will allow the Fund to decide, by a majority of 85 per cent of the total voting rights, transactions and transactions that are described only in general terms in the Fund`s articles. However, it is not very likely that these enabling clauses will significantly affect the functioning of the monetary system. It is hoped, however, that they will make it easier for the Fund to adapt to changing circumstances. I do not find these arguments entirely persuasive. The same power of the United States could have been used now to obtain a clause stipulating that the agreements would apply until an agreement was reached on their modification or termination. And in the vast monetary negotiations of 1975, there was more room than there could be and take more room later. With regard to the second argument, European banks could intervene to stabilise the price of gold adequately, without taking the risk of irrevocably committing themselves to a strong link. Moreover, such efficiency, as it exists in our current institution, will probably be undermined by a significant tendency in recent years to politicize monetary problems.

Political influence can be a very positive factor. Mr. Lieftinck said that during his tenure as Dutch Finance Minister, whenever negotiations on the creation of the Benelux were seriously stalled, he insisted on the presence of foreign ministers, as they constitute the political will to succeed.