The US House Financial Services Committee recently passed the Taiwan Non-Discrimination Act, moving it forward to its second and third readings before it proceeds to the Senate.
The bill, introduced last month by Republican Representative Young Kim and her Democratic counterpart Al Green, calls for the US government to support Taiwan’s admission into the IMF as a member, and participate in the financial institution’s regular surveillance activities relating to its economic and financial policies.
The bipartisan bill also urges the US government to support IMF employment opportunities for Taiwanese.
Before the bill passed, Kim said that the US had long supported Taiwan’s inclusion in international organizations and advocated for a mechanism to ensure its voice is heard when full membership is not possible.
This is the first step for Taiwan to join the global financial community. Becoming a member of the IMF would not only be a breakthrough for the nation’s international participation, but would also secure its place in the global financial safety net — boosting Taiwan’s economic resilience.
The bill mandates the US representative to the IMF to advocate for Taiwan’s admission and vote in its favor, while requiring the US secretary of the treasury to report annually to the US Congress on the progress.
While the IMF operates by consensus, it does not follow the “one country, one vote” principle used by many international organizations. Instead, it employs a weighted-majority voting system, where a member’s voting power is determined by its financial contribution.
Each IMF member receives a basic vote along with additional votes based on its quota, which determines its voting weight. Specifically, a country gains one vote for every 100,000 special drawing rights of its quota, meaning voting weight increases proportionally with quota size.
The US holds the largest voting share in the IMF at 17 percent, followed by Japan, China, Germany and France. The Western bloc led by the US maintains a dominant influence within the organization. This advantage allowed Kosovo to become a member despite opposition from China and Russia, which had blocked its UN membership.
IMF members must contribute their quota to ensure access to financial support in times of need. Gaining access to the organization’s “rainy day fund” — a mutual assistance mechanism — would allow Taiwan to seek aid during natural disasters or economic crises.
Aid from the IMF could also reassure international investors and bring in more foreign capital, which would strengthening economic resilience and security.
Kim visited Taiwan last year. While the bill passed the US House last year, it did not advance in the Senate. This year, it was reintroduced and swiftly approved by the House Financial Services Committee at the beginning of the congressional session. It is a good start.
Honda Chen is a senior researcher at the Taiwan Academy of Banking and Finance.
Translated by Fion Khan
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