The United States Congress has failed to adopt funding measures for the International Monetary Fund (IMF), thwarting quota and governance reforms that were agreed by the majority of the Fund's membership in 2010.
The quota reform cannot proceed without the US, which holds the controlling share of IMF votes. The reforms would have given more power to emerging markets and reduced Europe's dominance on the Fund's board.
Head of Oxfam's Washington office Nicolas Mombrial said: "This is very bad news and a serious blow to the IMF's legitimacy and credibility. Europe now keeps its massive overrepresentation at the IMF, and emerging economies are shut out of decision-making on the running of the global economy. It's time for the US to support reform at the IMF, and for the institution to join the 21st century."