G20 performance on international financial institutional reform

Reforming international financial institutions stands at the core of the G20’s governance agenda. Emerging and developing economies have long argued that the structures of the International Monetary Fund and World Bank no longer reflect today’s economic realities, with voting power and financing still heavily concentrated in the relatively declining advanced economies. The latest reviews show limited progress on these institutions’ quota realignment and capital mobilisation, leaving the system misaligned with the rise of multipolarity. Moreover, BRICS members have led calls for IFI reform. As host of the 2025 G20 summit, South Africa aims to continue building momentum on this issue.

Deliberations

From their first summit in 2008 until 2024, G20 leaders issued 35 documents that contained 38,127 words on IFI reform, averaging 18% per summit, although no document was dedicated solely to the issue. Hamburg in 2017 with 5,280 words had the most words, taking 15% of that summit’s total. The lowest levels were at Antalya in 2015 with 3% and Covid-preoccupied Rome in 2021 with 5%.

Examples of highs and lows in between include the 2009 summits at London with 46% and Pittsburgh with 41%, Toronto in 2010 with 38% on the higher end; lows included Hangzhou in 2016 with 8% and 2018 in Buenos Aires with 15%. Osaka in 2019 had 13%, Riyadh in 2020 had 11%, New Delhi in 2023 had 17%, and Rio de Janeiro in 2024 had 12%.

Decisions

From 2008 to 2024, G20 leaders made 176 commitments on IFI reform, averaging 5% of those on all subjects. In the early years, they made more commitments on the issue: 14 (15%) at Washington in 2008, and 29 (22%) at London in 2009. There was a steady drop at subsequent summits, with 11 (9%) at Pittsburgh in 2009 and four (7%) at Toronto in 2010. By the 2013 St Petersburg Summit, the number of commitments fell to five (2%), and stabilised at below 2% per summit from 2020 to 2023. At the 2024 Rio de Janeiro Summit it plunged to just one (0.6%).

Delivery

The G20’s compliance with the 10 assessed commitments on IFI reform made between 2008 and 2023 averaged 71%, the same as for all subjects, as assessed by the G20 Research Group. Compliance varied widely, from a low of 53% for 2009 Pittsburgh to a high of 95% for 2010 Toronto and 93% each for 2015 Antalya and 2022 Bali. Within this variation, compliance has generally risen. From 2009 to 2013 it averaged 66%, and from 2014 to 2023 it averaged 81%. By May 2025, compliance with the commitment assessed from the 2024 Rio Summit averaged 50%.

CAUSES

Shock-activated vulnerability plays a role in these compliance patterns. The 2008–2012 global financial crises spurred more IFI reform commitments, and the absence of financial crises afterward caused a sharp decline. Additionally, emphasis on IFI reform often shifts with the host country’s priorities, with summits led by BRICS members including it as a main theme of their presidency, as seen this year with South Africa; this could result in improved compliance. The G20 can do other things to encourage an upward trend.

The evidence shows that the specificity of the commitments – including deadlines – matters. Commitments that include a deadline averaged compliance of 79%, compared to 65% for those without.

Also, making fewer commitments on IFI reform correlates with higher compliance. Only two commitments assessed from the 2022 Bali Summit, representing 1% of that summit’s total, achieved 93% compliance, compared with 11 at Pittsburgh in 2009 (9%) that averaged 53%. More research is needed; however, this initially suggests that the G20 can make fewer highly specific commitments on IFI reform to achieve high compliance with them.

Conclusion

G20 summits consistently stress adjusting quotas and voting power to reflect global economic changes and enhancing the voice of emerging economies. This continuity shows that, although progress is slow, IFI reform remains a persistent priority, reinforced by coordinated pressure from groups such as the BRICS. Understanding these dynamics is key to interpreting shifts in global economic power, the role of emerging economies in governance, and how G20 decisions influence development, financial stability and equity worldwide.