If Congress stalls this quota reform measure that the executive branches from both parties have negotiated , they will be weakening a U.S.-friendly international institution and inviting potential rivals to set up or bolster alternatives. Which, if you think about, is a really stupid way to run U.S. foreign economic policy.
Jack Lew said that the US would lose some of its ability to mold international economic rules if Republicans in Congress did not drop their opposition to reforms of the IMF that would give China and other emerging economies a greater voice in the fund.“Our international credibility and influence are being threatened,” he said. “To preserve our leadership role at the IMF, it is essential that these reforms be approved. The alternative will be a loss of US influence and our ability to shape international norms and practices.”
Republican Sen. Jeff Sessions of Alabama acknowledged irritation about IMF voting rights may have been a factor.“I think this could be an unfortunate event and it might be bigger than we understand today,” he told the Brussels Forum, an annual trans-Atlantic dialogue organized by the German Marshall Fund of the United States.