Scale of quota assessments of the Member States 2012-2014 Secretariat for Administration and Finance.

Scale of quota assessments of the Member States

2012-2014

Secretariat for Administration and Finance

Summary

The scale methodology

• First three-year review of scale, following UN methodology, as adopted by GA in AG/RES. 1 (XXXIV – E/07)

• Calculation of ability to pay is now automatic based on World Bank/IMF published data (GNI, external debt)

• Assessments determined by income, relative size of the economies, discounted for low-income countries and variations capped at 25% on level of previous scale

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Scale of assessments 2012-20142009-2011 Quota % Increases % Limiting Change 2012-2014 % ChangeQuota % w/ o limits (Decreases) Change to +/ - 25% Quota over 2011

Antigua and Barbuda 0.022 0.022 - 0.0% - 0.022 0.0%Argentina 3.211 2.005 (1.206) -37.6% (0.803) 2.408 -25.0%Bahamas 0.077 0.063 (0.014) -18.4% (0.013) 0.064 -16.9%Barbados 0.060 0.022 (0.038) -63.3% (0.015) 0.045 -25.0%Belize 0.022 0.022 - 0.0% - 0.022 0.0%Bolivia 0.046 0.043 (0.004) -7.6% (0.003) 0.043 -6.5%Brazil 7.953 10.341 2.388 30.0% 1.988 9.941 25.0%Canada 13.761 11.889 (1.872) -13.6% (1.702) 12.059 -12.4%Chile 1.073 1.129 0.056 5.2% 0.072 1.145 6.7%Colombia 0.839 1.596 0.757 90.2% 0.210 1.049 25.0%Costa Rica 0.187 0.209 0.022 11.8% 0.025 0.212 13.4%Cuba 0.766 0.475 (0.291) -38.0% (0.191) 0.575 -24.9%Dominica 0.022 0.022 - 0.0% - 0.022 0.0%Dominican Republic 0.206 0.277 0.071 34.5% 0.051 0.257 24.8%Ecuador 0.207 0.254 0.047 22.7% 0.051 0.258 24.6%El Salvador 0.105 0.113 0.008 7.6% 0.010 0.115 9.5%Grenada 0.022 0.022 - 0.0% - 0.022 0.0%Guatemala 0.187 0.161 (0.026) -13.9% (0.024) 0.163 -12.8%Guyana 0.022 0.022 - 0.0% - 0.022 0.0%Haiti 0.045 0.022 (0.023) -51.1% (0.011) 0.034 -24.4%Honduras 0.045 0.047 0.002 4.4% 0.003 0.048 6.7%J amaica 0.123 0.099 (0.024) -19.5% (0.023) 0.100 -18.7%Mexico 8.141 8.513 0.372 4.6% 0.493 8.634 6.1%Nicaragua 0.045 0.022 (0.023) -51.1% (0.011) 0.034 -24.4%Panama 0.163 0.144 (0.019) -11.7% (0.017) 0.146 -10.4%Paraguay 0.124 0.052 (0.072) -58.1% (0.031) 0.093 -25.0%Peru 0.553 0.604 0.051 9.2% 0.060 0.613 10.8%Saint Kitts and Nevis 0.022 0.022 - 0.0% - 0.022 0.0%Saint Lucia 0.022 0.022 - 0.0% - 0.022 0.0%Saint Vincent and the Grenadines 0.022 0.022 - 0.0% - 0.022 0.0%Suriname 0.045 0.022 (0.023) -51.1% (0.011) 0.034 -24.4%Trinidad and Tobago 0.152 0.172 0.020 13.2% 0.022 0.174 14.5%United States 59.470 59.470 - 0.0% - 59.470 0.0%Uruguay 0.181 0.192 0.011 6.1% 0.014 0.195 7.7%Venezuela 2.060 1.888 (0.172) -8.3% (0.145) 1.915 -7.0%

100.000 99.999 (0.002) (0.001) 100.000

Country

Content

I. Background

II. Ability to pay

III. Methodology

IV. Economic growth and scale of assessments 2012-2014

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IBackground

BASIS FOR DETERMINING QUOTA ASSESSMENTS

Article 55

“The General Assembly shall establish the bases for fixing the quota that each Government is to contribute to the maintenance of the Organization, taking into account the ability to pay of the respective countries and their determination to contribute in an equitable manner” (emphasis added).

19481948 The OAS is established. Charter mandates that contributions be based on the Member states’ capacity to pay. Is first applied in 1949.

BACKGROUND

1949-19771949-1977 The OAS scale was calculated on the basis of the quotas assessed to OAS Member states at the UN

1977-19901977-1990 The quota scale was frozen with the proposal to lower the maximum quota (United States).

BACKGROUND

1990’s1990’s New scales approved upon arrival of new members: Canada (1990), Belize and Guyana (1992)

1997-20061997-2006 CAAP considers several options for a new quota scale, based on the UN scale of assessments

19961996 Member countries began to call for the need to review the scale in order to comply with the Charter (capacity to pay).

BACKGROUND

20062006 A group of experts convened by the Permanent Council discusses alternatives presented. A transitory scale for 2007-2008 is adopted pending deliberation of a final proposal.

2009-20112009-2011 First period under which a quota scale calculated under the approved methodology becomes effective

20072007 General Assembly reaches a consensus on a methodology for calculating the scale and approves it in a special session in resolution AG/RES. 1 (XXXIV-E/07)

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IIAbility to Pay

“Ability to pay”

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• The basis for measuring

■ Size of the economy (Gross National Income) adjusted for:

■ Total external debt

■ Per capita income

■ Application of floor and ceiling rates

■ Quota growth/decline capped at 25% of previous period

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IIIMethodology

The Data

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• GNI data for base periods of 6 and 3 years for the periods 2003-2008 and 2006-2008.

• Obtained through the United Nations website and Annual Statistical Reports published by the ECLAC.

• External debt data: The World Bank’s Global Development Finance 2011 and ECLAC reports

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Methodology

2009-2011 OAS Base Gross National Debt-Burden Low Per Capita Floor Ceiling 2012-2014 QuotaQuota % Assesment Period Income Adjustment Income Adjustment Rate Rate Applying Limits

I* I I I I I IV IV V VI VI I**

Argentina 3.211 6 yrs 1.213 1.122 1.144 1.134 1.939 3 yrs 1.389 1.319 1.344 1.334 2.071 Average 6 & 3 yrs 2.005 2.408

Costa Rica 0.187 6 yrs 0.128 0.124 0.126 0.125 0.214 3 yrs 0.134 0.130 0.132 0.131 0.204 Average 6 & 3 yrs 0.209 0.212

Dominica 0.022 6 yrs 0.002 0.001 0.001 0.022 0.022 3 yrs 0.002 0.001 0.001 0.022 0.022 Average 6 & 3 yrs 0.022 0.022

Trinidad and Tobago 0.152 6 yrs 0.100 0.099 0.101 0.100 0.172 3 yrs 0.110 0.110 0.112 0.111 0.172 Average 6 & 3 yrs 0.172 0.174

United States 59.470 6 yrs 75.717 76.178 76.178 76.178 59.470 3 yrs 73.429 73.837 73.801 73.801 59.470 Average 6 & 3 yrs 59.470 59.470

* As per AG/RES. 1 (XXXIV-E/07)** Reflects 25% cap on variations from the 2009-2011 percentage assessment

SCALE OF QUOTA ASSESSMENTS, IN PERCENTAGE TERMS

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Methodology










■ Step 1: GNI figures in US dollars are used to calculate shares of GNI for each Member State. The figures are averaged for each period of 6 and 3 years.

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Methodology










■ Step 2: The debt adjustment for each year is deducted to derive the debt-adjusted GNI for each statistical base. Debt adjustment is equal to one-eight of total outstanding debt stock.

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Methodology










■ Step 3: Application of the low Per Capita income adjustment. This involves the calculation of the median debt-adjusted Per Capita GNI during each base period. These figures are the thresholds for the low Per Capita income adjustments.

4,174 4,950 Median (Threshold):

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Methodology










■ Step 4: The GNI of each country whose debt-adjusted Per Capita GNI was below the 30th percentile is reduced by 80% (gradient) of the percentage by which its debt-adjusted Per Capita GNI is below the threshold.

4,174 4,950

3,491 3,121 3,518

Median (Threshold):

30th percentile:

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Methodology










■ Step 5: The total amount of the low Per Capita income adjustment is reallocated pro rata to Member States whose debt-adjusted Per Capita GNI was above the 30th percentile, except the ceiling country.

4,174 4,950

3,491 3,121 3,518

Median (Threshold):

30th percentile:

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Methodology










■ Step 6: The minimum assessment rate, or floor (0.022%), is applied to those Member States whose rate is lower. Pro rata reductions are applied to all other Member States, except the ceiling country.

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Methodology










■ Step 7: Application of the maximum assessment rate (59.470%). Increases corresponding to the resulting reduction for the ceiling country are applied pro rata to other Member States, except those affected by the floor rate.

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Methodology










■ Step 8: An arithmetic average of the statistical base periods of 6 and 3 years is calculated for each Member State.

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Methodology










■ Step 9: Application of the maximum limits for increases/decreases in the Member States’ assessment, established at 25%. Corresponding increases/decreases are distributed pro rata among the Member States, except those affected by the floor and ceiling rates.

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IVEconomic growth and scale of assessments 2012-2014

Economic Growth 2003-2008

Cumulative Annual Average

Venezuela 296% 31.7%Paraguay 196% 24.2%Brazil 192% 23.9%Uruguay 174% 22.4%Argentina 163% 21.4%Colombia 162% 21.2%Haiti 135% 18.6%Dominican Republic 132% 18.3%Suriname 128% 17.9%Chile 121% 17.2%Trinidad and Tobago 118% 16.8%Bolivia 108% 15.7%Peru 104% 15.3%Ecuador 85% 13.1%Honduras 78% 12.2%Guatemala 76% 12.0%Panama 76% 12.0%Canada 75% 11.9%Cuba 75% 11.8%Costa Rica 71% 11.3%Guyana 64% 10.4%Saint Kitts and Nevis 62% 10.2%Saint Vincent and the Grenadines 61% 10.0%J amaica 61% 9.9%Nicaragua 60% 9.9%Antigua and Barbuda 60% 9.8%Mexico 55% 9.2%Saint Lucia 48% 8.1%El Salvador 47% 8.0%Grenada 42% 7.3%Dominica 38% 6.6%Belize 37% 6.6%Barbados 36% 6.4%United States 31% 5.5%Bahamas 25% 4.6%

Growth rates 2003 - 2008


$ % of total

United States 76,700,869,359,834 66.740%Canada 7,089,100,884,739 6.168%Brazil 5,965,220,062,692 5.191%Mexico 5,274,911,586,049 4.590%Argentina 1,229,196,622,690 1.070%Venezuela 1,067,368,824,223 0.929%Colombia 942,707,326,170 0.820%Chile 692,477,741,840 0.603%Peru 502,899,913,633 0.438%Cuba 286,432,264,049 0.249%Ecuador 226,870,745,788 0.197%Dominican Republic 186,225,583,619 0.162%Guatemala 173,314,269,110 0.151%Costa Rica 129,866,587,371 0.113%Uruguay 116,673,302,199 0.102%El Salvador 105,835,427,082 0.092%Trinidad and Tobago 101,000,054,938 0.088%Panama 93,301,829,195 0.081%J amaica 66,470,049,784 0.058%Bolivia 65,444,930,070 0.057%Honduras 61,938,003,389 0.054%Paraguay 59,776,817,270 0.052%Bahamas 39,294,713,423 0.034%Nicaragua 32,224,818,135 0.028%Haiti 27,468,268,309 0.024%Barbados 18,027,466,056 0.016%Suriname 11,732,049,137 0.010%Belize 6,257,419,981 0.005%Antigua and Barbuda 5,488,851,852 0.005%Guyana 5,317,449,016 0.005%Saint Lucia 5,149,331,214 0.004%Grenada 3,093,096,296 0.003%Saint Vincent and the Grenadines 2,719,616,363 0.002%Saint Kitts and Nevis 2,548,860,087 0.002%Dominica 1,679,369,867 0.001%

Total GNI 2003 - 2008


2003 GNI 2008 GNI $ Change % of total

United States 10,916,100,000,000 14,285,369,359,834 3,369,269,359,834 53.144%Brazil 534,466,059,571 1,561,831,885,497 1,027,365,825,926 16.205%Canada 845,500,582,301 1,481,489,305,399 635,988,723,098 10.032%Mexico 687,993,031,186 1,068,418,578,654 380,425,547,468 6.001%Venezuela 81,343,570,734 321,824,659,116 240,481,088,381 3.793%Argentina 121,638,556,875 320,126,661,879 198,488,105,004 3.131%Colombia 91,266,297,721 238,816,795,602 147,550,497,881 2.327%Chile 69,528,021,146 153,698,895,342 84,170,874,196 1.328%Peru 59,087,429,935 120,603,155,859 61,515,725,924 0.970%Cuba 35,340,900,000 61,757,564,049 26,416,664,049 0.417%Dominican Republic 18,667,491,962 43,284,455,114 24,616,963,151 0.388%Ecuador 27,108,087,000 50,222,107,788 23,114,020,788 0.365%Uruguay 11,555,067,079 31,695,313,806 20,140,246,726 0.318%Guatemala 21,591,111,948 38,089,313,596 16,498,201,649 0.260%Trinidad and Tobago 10,628,425,283 23,135,342,347 12,506,917,063 0.197%Costa Rica 16,803,781,471 28,735,991,058 11,932,209,587 0.188%Paraguay 5,664,613,753 16,767,933,069 11,103,319,316 0.175%Panama 11,963,500,000 21,069,229,195 9,105,729,195 0.144%Bolivia 7,780,171,864 16,159,032,092 8,378,860,228 0.132%El Salvador 14,623,586,000 21,461,125,262 6,837,539,262 0.108%Honduras 7,867,049,418 13,966,927,387 6,099,877,969 0.096%J amaica 8,838,702,411 14,192,620,331 5,353,917,920 0.084%Haiti 2,745,667,842 6,455,815,117 3,710,147,275 0.059%Nicaragua 4,205,941,169 6,741,869,120 2,535,927,951 0.040%Suriname 1,234,703,074 2,818,148,877 1,583,445,803 0.025%Bahamas 5,846,240,000 7,323,213,423 1,476,973,423 0.023%Barbados 2,587,800,000 3,529,178,912 941,378,912 0.015%Guyana 700,125,668 1,146,884,838 446,759,170 0.007%Antigua and Barbuda 714,411,111 1,141,077,778 426,666,667 0.007%Saint Lucia 699,982,612 1,035,581,797 335,599,184 0.005%Belize 891,080,500 1,224,159,903 333,079,403 0.005%Saint Vincent and the Grenadines 358,518,519 576,975,622 218,457,104 0.003%Saint Kitts and Nevis 318,485,298 516,676,451 198,191,153 0.003%Grenada 429,733,333 611,929,630 182,196,296 0.003%Dominica 238,259,489 327,869,089 89,609,600 0.001%

Total 13,626,326,986,274 19,966,165,632,830 6,339,838,646,557

Growth 2008 over 2003 total

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■ Economic growth may explain, in most cases, increases or decreases to a member state’s quota

■ Even though a member state may have experienced growth, its overall quota may be reduced if the relative size of the economy is less than the previous quota (e.g. Argentina)

■ Large increases to major contributors tend to “crowd out” or diminish the relative size of others and contribute to their reduction (e.g. Brazil and Mexico grow while Canada sees a reduction)

■ Caps on growth or reductions will affect the contributions of other member states due to the redistribution of excess percentages

Explaining changes to the scale of assessments

Scale of quota assessments of the Member States 2012-2014 Secretariat for Administration and Finance.

Documents

methodology slide

background slide

scale methodology

finance slide

e07 slide

methodology step

previous period slide

scale of quota assessments