The Portuguese Policy toward the IMFManuel da Fonseca Soares
The Current Situation
The Portuguese Foreign Policy
Agenda
Policy Recommendation
s
The Current Situation at the IMF
• Italian director represents Portugal in the Board of Directors
• Other members:• Albania
• Greece
• Malta
• San Marino
• Timor-Leste (the only non-European)
• Portugal as 2nd largest stakeholder within its group, after Italy
• Lack of cultural, economical and political ties with these
actors. Especially in comparison to other European partners
and Portuguese speaking countries worldwide.
The Portuguese Foreign Policy AgendaPriority #1 – Successful candidacy to the UNSecurity Council for 2011-2012
▫ 2 seats in dispute▫ 2 competitors – Germany and Canada
Portuguese Odds – need for pragmatic evaluation of its limitations
• UNSC elections characterized by a barter system• Portuguese ODA figures dwarf those of Canada and Germany• Canada and Germany both have directors at the IMF Board
• Germany as the 3rd largest stakehodler at the IMF• Canada uses constituency – multilateral commitment mechanism
• Major powers do not reveal their voting orientations
One state, one vote – all votes count. Majority in WEOG + 2/3 of UNGA
The Portuguese Foreign Policy Agenda
• Portugal disburses mere 4.4 % of Germany’s and 12% of Canadian ODA
• Clear steping up of ODA figures ahead of the UNSC election
Source – OECD-DAC – Development Co-Operation Directorate
Policy Options• Free riding the system
▫ Abstention from the developments in the international system▫ Increased susceptibility to crises
• Bridging developing and developed world▫ Portugal as a recently industrialized country▫ Residual bargaining power compared to that of Germany and
Canada
• Proposal for group re-alignment at the IMF▫ Brazil at the top. Portuguese-speaking + members of Brazil’s group▫ Re-enactment of historical linkages with South Atlantic
• Objectives:▫ Foster attitudinal changes about Portugal’s character▫ Solidarity towards calls for IFI reform in the developing world▫ Signaling commitment to the developing world. G77 IS 2/3 of the
UN
All votes count – US vote equals that of Palau