The International Monetary Fund (IMF)

By: Rohan Bhatia and Rahul Swaminathan

Purpose

To foster economic growth and stability through trade

To grant economic opportunities and cope with economic challenges

To maintain orderly exchange rates

Yeah…but what does it do? Gives Policy advice

Administers loans

Provides technical aid

The Age of the Organization Created 60 years ago

Meant to build economic framework

Broader scale

Recently has increased its lending power and flexibility

Important Documents

Articles of Agreement of the International Monetary Fund

1944/1945 Lays out the purposes and

operating guidelines of the IMF

Who makes the IMF what it is 1). International Monetary and

Financial Committee 2). Board of Governors 3). Joint IMF- World Bank

Development Committee 4). Executive Board 5). Independent Evaluation Office 6). Managing Director

Who makes the IMF what it is (cont.)A). Board of GovernorsHighest decision-making body

One governor and one alternate governor for each member country

Has final say

Meets once a year All members are appointed

Who makes the IMF what it is (cont.)

B). Executive Board Conduct day to day affairs

24 elected/appointed officials

Who makes the IMF what it is (cont.)

C). Independent Evaluation Office

Conducts objective evaluation of policy

Promotes the learning culture in the IMF

Is it really great? Yes.

A last resort assurance and lender

Provides necessary objective help

External point of view

Is it really great? No.

Assumes that one solution always applies

Lessens social services

The IMF on a Global Scale Promotes the Dependency Theory

Induces moral hazard

Works Cited Good governance: the imf. N.p., n.d. Web. 26 Mar 2012. 

<http://www.imf.org/external/pubs/ft/exrp/govern/govindex.htm>.

International monetary fund: About the imf. N.p., 2010. Web. 26 Mar 2012. <http://www.imf.org/external/index.htm>.

"The Origins of the IMF and World Bank." Global Exchange. N.p., n.d. Web. 26 Mar 2012. <http://www.globalexchange.org/resources/wbimf/origins>.