Share The International Monetary Fund IMF is an international organization that provides financial assistance and advice to member countries. This article will discuss the main functions of the organization, which has become an enduring institution integral to the creation of financial markets worldwide and to the growth of developing countries. What Does It Do?
Some of the conditions for structural adjustment can include: Cutting expenditures, also known as austerity. Focusing economic output on direct export and resource extractionDevaluation of currencies, Trade liberalisationor lifting import and export restrictions, Increasing the stability of investment by supplementing foreign direct investment with the opening of domestic stock marketsRemoving price controls and state subsidiesPrivatizationor divestiture of all or part of state-owned enterprises, Enhancing the rights of foreign investors vis-a-vis national laws, Improving governance and fighting corruption.
These conditions are known as the Washington Consensus. Benefits[ edit ] These loan conditions ensure that the borrowing country will be able to repay the IMF and that the country will not attempt to solve their balance-of-payment problems in a way that would negatively impact the international economy.
This indicates that IMF lending does not impose a burden on creditor countries, as lending countries receive market-rate interest on most of their quota subscription, plus any of their own-currency subscriptions that are loaned out by the IMF, plus all of the reserve assets that they provide the IMF.
This led to the devaluation of national currencies and a decline in world trade. The representatives of 45 governments met at the Bretton Woods Conference in the Mount Washington Hotel in Bretton Woods, New Hampshirein the United States, to discuss a framework for postwar international economic co-operation and how to rebuild Europe.
There were two views on the role the IMF should assume as a global economic institution. American delegate Harry Dexter White foresaw an IMF that functioned more like a bank, making sure that borrowing states could repay their debts on time.
British economist John Maynard Keynes imagined that the IMF would be a cooperative fund upon which member states could draw to maintain economic activity and employment through periodic crises. The increase reflected in particular the attainment of political independence by many African countries and more recently the dissolution of the Soviet Union because most countries in the Soviet sphere of influence did not join the IMF.
This is known as the Nixon Shock. Since [ edit ] The IMF provided two major lending packages in the early s to Argentina during the — Argentine great depression and Uruguay after the Uruguay banking crisis. Property taxes are equitable and efficient, but underutilized in many economies There is considerable scope to exploit this tax more fully, both as a revenue source and as a redistributive instrument.
The former Czechoslovakia was expelled in for "failing to provide required data" and was readmitted inafter the Velvet Revolution. Poland withdrew in —allegedly pressured by the Soviet Union —but returned in Members needed to make periodic membership payments towards their quota, to refrain from currency restrictions unless granted IMF permission, to abide by the Code of Conduct in the IMF Articles of Agreement, and to provide national economic information.
However, stricter rules were imposed on governments that applied to the IMF for funding. Please help improve this article by adding citations to reliable sources.
Unsourced material may be challenged and removed. February Learn how and when to remove this template message Board of Governors[ edit ] The Board of Governors consists of one governor and one alternate governor for each member country. Each member country appoints its two governors.
The Board normally meets once a year and is responsible for electing or appointing executive directors to the Executive Board. While the Board of Governors is officially responsible for approving quota increases, Special Drawing Right allocations, the admittance of new members, compulsory withdrawal of members, and amendments to the Articles of Agreement and By-Laws, in practice it has delegated most of its powers to the IMF's Executive Board.
The International Monetary and Financial Committee has 24 members and monitors developments in global liquidity and the transfer of resources to developing countries. They also advise on trade and environmental issues. The Executive Directors represent all member countries in a geographically based roster.
The Executive Director representing the largest constituency of 22 countries accounts for 1.The International Monetary Fund is an international organization that aims to promote global economic growth and financial stability, to encourage international trade, and to reduce poverty.
Next Up. International Monetary Fund Presentation - authorSTREAM Presentation. International Monetary Fund Presentation - authorSTREAM Presentation No description available. Comments. Presentation Transcript. SUNSHINE GROUP: SUNSHINE GROUP INTERNATIONAL MONETARY FUND April The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., consisting of " countries working to foster global monetary cooperation, secure financial stability, facilitate international trade.
IMF Home page with links to News, About the IMF, Fund Rates, IMF Publications, What's New, Standards and Codes, Country Information and featured topics. File:Headquarters of the International Monetary Fund (Washington, DC).jpg.
From Wikimedia Commons, the free media repository. Jump to navigation Jump to search. File; File history; Description: Deutsch: Hauptverwaltung des Internationalen Währungsfonds in. created the International Monetary Fund (the IMF) and the World Bank to prevent economic crises and to rebuild economies shattered by the war.
The Bretton Woods strategy addressed what were considered to be the .