Amidst criticism of lack of effectiveness of its surveillance over the international monetary system, the International Monetary Fund adopted a new surveillance decision in June 2007, replacing a 30-year old earlier decision. As dialogue and persuasion remain the hallmark of effective surveillance, the credibility of the new decision hinges on its implementation in an even-handed manner between developed and developing countries and among countries that have floating exchange rates and managed exchange rates. Governance reform of the IMF with greater voice and participation of developing countries and emerging market economies becomes important in enhancing their shared commitment to effective implementation of the new decision.
