symmetrical system that would put part of the burden on surplus countries, like France and
To increase exchange rate flexibility under the system that had been in place would be
destined to fail because it would only emphasize the asymmetry of the system – all currencies
could float under this system except for the dollar, which was obligated to remain at a fix price
relative to gold.
There was no agreement on increasing the obligations of surplus countries at
this point in the Jamaica Agreement, but the issue had been brought out in the open and served as
a major topic of discussion.
Multilateral bargaining makes arriving at an equitable solution even more difficult.
There were many concerns that had to be addressed in this case, and various actors were vying
for dominance on different issues. France got the gold arrangements they wanted, but gave up
hope of ever restoring the gold standard. On the plus side, they were able to sell their gold at
higher market prices and avoid using dollars. The United States got the exchange rate
arrangements they wanted in exchange for agreeing to language that left open the possibility of
par values in the future. Developing countries got more resources from the IMF and a larger
share of quotas, but did not get the SDR-development link or other issues mentioned in the
Outline of Reform that recognized the need for the transfer of real resources.
Everyone got part
of what they wanted, thus the Jamaica Agreement was considered equitable by all IMF members.
Because of the unanimity rule, agreement will only be reached once the major parties
believe that the deal is equitable. However, an equitable solution is not always quickly achieved.
An equitable solution runs the risk of being so watered down or vague that it is ineffective. But
the acknowledgement of the need for give and take, especially by the United States, led to
eventual success in this case. “The Jamaica agreement, and the consultations that led to it,
demonstrate an American willingness to adapt to the perceived desires of other countries in an
effort to preserve international monetary and political harmony.”
13
Convention