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USA. in particular those with an impact on exchange rates and the balance of payments. ORGANIZATION AND STRUCTURE: The International Monetary Fund was created in July of 1944. Its headquarters are located in Washington. It also offers highly leveraged loans mainly to poorer countries.TABLE OF CONTENT INTERNATIONAL MONETARY FUNDS (IMF) INTRODUCTION: The International Monetary Fund (IMF) is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries.C.. Countries 2 . originally with 46 members. with a goal to stabilize exchange rates and assist the reconstruction of the world's international payment system. D. It is an organization formed to stabilize international exchange rates and facilitate development.

2007) The IMF describes itself as "an organization of 185 countries (Montenegro being the 185th. United States of America.contributed to a pool which could be borrowed from. working to foster global monetary cooperation. 3 . New Hampshire. 2008 to propose a new framework for the fund. when the first 29 countries signed its Articles of Agreement. [7] The IMF was formally organized on December 27. has required the IMF to adapt in a variety of ways to continue serving its purposes effectively. Liechtenstein. reflecting in particular the attainment of political independence by many developing countries and more recently the collapse of the Soviet bloc. the International Monetary Fund's executive board agreed to sell part of the IMF's gold reserves. Cuba (left in 1964). IMF Managing Director Dominique Strauss-Kahn welcomed the board's decision April 7. by countries with payment imbalances. TODAY: The IMF's influence in the global economy steadily increased as it accumulated more members. HISTORY: The International Monetary Fund was formally created in July 1944 during the United Nations Monetary and Financial Conference. secure financial stability. Andorra. 1945. The statutory purposes of the IMF today are the same as when they were formulated in 1943 (see #Assistance and reforms). In 2008. Most are represented by other member states on a 24-member Executive Board but all member countries belong to the IMF's Board of Governors. as of January 18. with the delegates to the conference agreeing on a framework for international economic cooperation. Monaco. facilitate international trade. faced with a shortfall in revenue. promote high employment and sustainable economic growth. together with the changes in the world economy. 2008. The number of IMF member countries has more than quadrupled from the 44 states involved in its establishment. designed to close a projected $400 million budget deficit over the next few years. on a temporary basis. North Korea. The expansion of the IMF’s membership. With the exception of Taiwan (expelled in 1980). On April 27. The budget proposal includes sharp spending cuts of $100 million until 2011 that will include up to 380 staff dismissals. all UN member states participate directly in the IMF. and reduce poverty". (Condon. The representatives of 44 governments met in the Mount Washington Hotel in the area of Breton Woods. Tuvalu and Nauru. 2007).

and to allocate to member countries another $250 billion via Special Drawing Rights. As part of that decision.  To promote international monetary co-operation through a permanent institute.  To develop multilateral trade and payments.  To establish and maintain currency convertibility. it was decided that the IMF would require additional financial resources to meet prospective needs of its member countries during the ongoing global crisis. the G-20 leaders pledged to increase the IMF's supplemental cash tenfold to $500 billion.  To shorten the duration and lessen the degree of disequilibrium in the international balance of payments of members. 4 .  Provides technical advice.At the 2009 G-20 London summit.  To assist in the establishment of a multilateral system of payments in respect of current transactions.  To lend confidence to members by making the funds resources available to them under adequate safeguards.  Provides short term financial assistance to its member countries. OBJECTIVES:  To avoid the competitive devaluation and exchange control.  To facilitate the expansion of balanced growth of international trade.  Reducing tariffs and other trade restrictions.  To maintain orderly exchange arrangements among members and to avoid competitive exchange depreciation. FUNCTIONS:  Guardian of good conduct’ in the area of Balance of payments.  To provide exchange stability.

facilitates this cooperation. and the provision of policy advice. it helps the international monetary system serve its essential purpose of facilitating the exchange of goods. and capital among countries. loans to low-income countries are also aimed especially at poverty reduction. Supporting all three of these activities is IMF work in economic research and statistics. to provide temporary financing and to support policies aimed at correcting the underlying problems.  Machinery for altering the par values of the currency of a member country. where the policies of one country typically affect many other countries. IMF SURVEILLANCE The IMF is mandated to oversee the international monetary system and monitor the economic and financial policies of its 185 member countries. which takes place both at the global level and in individual countries. 1. During this process. ROLE OF IMF: The work of the IMF is of three main types.  International consultancy. Why is IMF surveillance important? In today's globalize economy. Third. aimed especially at crisis-prevention. Provides machinery for orderly adjustment of exchange rates. international cooperation is essential. The IMF also lends to countries with balance of payments difficulties. services.  Reservoir of currencies.  Lending institution of foreign currencies. the IMF provides countries with technical assistance and training in its areas of expertise. There are two main aspects to the IMF’s work: multilateral surveillance or oversight of 5 . In this way. with its nearly-universal membership of 185 countries.  Conducts research studies and publishes report. thereby sustaining sound economic growth. Surveillance involves the monitoring of economic and financial developments. a. This activity is known as surveillance. The IMF. the IMF highlights possible risks to domestic and external stability and advises on needed policy adjustments.

and regularly—usually once a year—visit member countries to exchange views with the government and central bank. providing more detailed analysis for five major regions. IMF staff also often meets with other stakeholders. During their mission. b. In nine out of ten cases. addressing issues of pressing interest. The WEO provides detailed analysis of the state of the world economy. The Board’s views are subsequently transmitted to the country’s authorities. Multilateral surveillance The IMF continuously reviews global and regional economic trends. such as parliamentarians and representatives of business. with the option of conducting multilateral consultations to foster debate and develop policy actions as a means to address problems of systemic or regional importance as was done in 2006-07 on global economic imbalances. In recent years. and civil society to help evaluate the country’s economic policies and direction. 6 . labor unions. c. such as the current global financial turmoil and economic downturn. The focus is on whether there are risks to domestic and external stability that argue for adjustments in economic or financial policies. Upon its return to headquarters. Almost all member countries now agree to publication of a Public Information Notice. surveillance has become increasingly transparent. Its key instruments of global and regional surveillance are two semi-annual publications. the mission submits a report to the IMF’s Executive Board for discussion. and bilateral surveillance.the world economy. The GFSR provides an up-to-date assessment of global financial markets and prospects and highlights imbalances and vulnerabilities that could pose risks to financial market stability. the World Economic Outlook (WEO) and the Global Financial Stability Report (GFSR). the staff report and other accompanying analysis is also published on the IMF’s website. which comprises appraisal of and advice on the policies of each member country. The IMF also publishes Regional Economic Outlook reports. which summarizes the views of IMF staff and the Executive Board. Country surveillance IMF economists monitor members’ economies on a continuous basis. Sometimes the IMF will draw attention to specific inter-linkages in the global economy.

Strengthening the practice of surveillance Surveillance needs to evolve with the global economy. with the adoption of the Decision on Bilateral Surveillance over Members’ Policies. In particular. and (ii) monitoring each member's compliance with its policy obligations. financial. financial sector issues are receiving greater coverage under surveillance and analytical tools for integrating financial sector 7 . Building on the Financial Sector Assessment Program (FSAP). the IMF is constantly reviewing its policy framework. For its part. f. they commit to running their domestic and external economic policies in keeping with a mutually agreed code of conduct. That means that surveillance should mainly focus on monetary.d. member countries undertake to collaborate with the IMF and with one another to promote the stability of the global system of exchange rates. The evolution of IMF surveillance and its role today Surveillance in its present form was established by Article IV of the IMF’s Articles of Agreement. a set of guidelines were published in August 2008. and evenhanded. • What is and what is not acceptable to the international community in terms of how countries conduct their exchange rate policies. In order to strengthen implementation. the IMF is charged with (i) overseeing the international monetary system to ensure its effective operation. Under Article IV. For example. To ensure that surveillance remains effective. as revised in the late 1970s following the collapse of the Bretton Woods system of fixed exchange rates. e. fiscal. The Decision clarifies: • That country surveillance should be focused on assessing whether countries’ policies promote external stability. the Managing Director proposes the use of “ad hoc consultations” on exchange rates to supplement the usual consultation procedures. policies and assess risks and vulnerabilities. In these guidelines. candid. Strengthening the policy framework for surveillance In June 2007. the current financial crisis has shown the need for deeper analysis of the linkages between the real economy and the financial sector. taking into account countries’ specific circumstances. and exchange rate. the policy framework of surveillance received its first major update since the 1970s. and • That surveillance should be collaborative.

The process of IMF lending Upon request by a member country. In their advice to individual countries. if it cannot find sufficient financing on affordable terms to meet its net international payments. Deep crises in Latin America kept demand for IMF resources high in the early 2000s. IMF staff seeks to leverage cross-country experiences and policy lessons. The changing nature of IMF lending The volume of loans provided by the IMF has fluctuated significantly over time. Spillovers of members’ policies on other members’ economies also receive particular attention in staff analysis.and capital markets analysis into macroeconomic assessments are being developed. and the IMF has been sharpening its exchange rate assessments. The economic 8 . 2. The oil shock of the 1970s and the debt crisis of the 1980s were both followed by sharp increases in IMF lending. the IMF does not lend for specific projects. and restore conditions for strong economic growth while undertaking policies to correct the underlying problems. When can a country borrow from the IMF? A member country may request IMF financial assistance if it has a balance of payments need—that is. an IMF loan is usually provided under an “arrangement”. c. b. stabilize their currencies. Unlike development banks. a. IMF LENDING: A core responsibility of the IMF is to provide loans to member countries experiencing balance of payments problems. the transition process in Central and Eastern Europe and the crises in emerging market economies led to further surges of demand for IMF resources. An IMF loan provides a cushion that eases the adjustment policies and reforms that a country must make to correct its balance of payments problem and restore conditions for strong economic growth. as a period of abundant capital flows and low pricing of risk gave way to global deleveraging in the wake of the financial crisis in advanced economies. IMF lending rose again starting in late 2008. but these loans were largely repaid as conditions improved. continue paying for imports. drawing on the organization’s unique vantage point as a global financial institution. This financial assistance enables countries to rebuild their international reserves. which stipulates the specific policies and measures a country has agreed to implement to resolve its balance of payments problem. In the 1990s.

The interest rate levied on PRGF and ESF loans is only 0. The IMF also provides emergency assistance to support recovery from natural disasters and conflicts. that are tailored to address the specific circumstances of its diverse membership.5 percent. The Flexible Credit Line has no pre-set cap on access. known as the “rate of charge. Poverty Reduction and Growth Facility (PRGF) and Exogenous Shocks Facility (ESF). and loans are to be repaid over a period of 5½–10 years. and repayment is due within 3¼-5 years of disbursement. Except for the PRGF and the ESF. The SBA is designed to help countries address short-term balance of payments problems. IMF Facilities Over the years. Non-concessional loans are provided mainly through Stand-By Arrangements (SBA). the IMF has developed various loan instruments.program underlying an arrangement is formulated by the country in consultation with the IMF and is presented to the Fund’s Executive Board in a “Letter of Intent. The rate of charge is based on the SDR interest rate. This limit may be exceeded in exceptional circumstances. delineated in their Poverty Reduction Strategy Papers (PRSPs). and the Extended Fund Facility (which is useful primarily for low-income members). SBAs may be provided on a precautionary basis—where countries choose not to draw upon approved amounts but retain the option to do so if conditions deteriorate—both within the normal 9 . The length of a SBA is typically 12–24 months.” Once an arrangement is approved by the Board. in some cases at concessional interest rates. Stand-By Arrangements (SBA). all facilities are subject to the IMF’s marketrelated interest rate. which was modified in September 2008 to make it more flexible and increase access levels. the Flexible Credit Line (FCL) for members with very strong policies and policy framworks. the loan is usually released in phased installments as the program is implemented. but is typically a multiple of the country’s IMF quota. The amount that a country can borrow from the Fund—its access limit—varies depending on the type of loan. or facilities. aims to meet the needs of lowincome member countries for rapid shock assistance with streamlined conditionality.” and large loans carry a surcharge. PRGF-supported programs for low-income countries are underpinned by comprehensive country-owned strategies. Lowincome countries may borrow at a concessional interest rate through the Poverty Reduction and Growth Facility (PRGF) and the Exogenous Shocks Facility (ESF). The bulk of Fund assistance is provided through SBAs. The ESF. d. which is revised weekly to take account of changes in short-term interest rates in major international money markets.

and is available in a single up-front disbursement rather than phased. a. About 90 percent of IMF technical assistance goes to low and lower-middle income countries. 3. The SBA provides for flexibility with respect to phasing. policies. Flexible Credit Line (FCL). Disbursements under the FCL are not conditioned on implementation of specific policy understandings as is the case under the SBA. There is flexibility to draw on the credit line at the time it is approved. The IMF provides emergency assistance to countries that have experienced a natural disaster or are emerging from conflict. Extended Fund Facility (EFF). by helping individual countries reduce weaknesses and vulnerabilities. financial. FCL arrangements are approved for countries meeting pre-set qualification criteria. and to design appropriate macroeconomic. technical assistance also contributes to a more robust and stable global economy. is not subject to the normal access limits. The length of the FCL is 6 months or 1 year (with a mid-term review). Who benefits from IMF technical assistance? Technical assistance is one of the benefits of IMF membership. Apart from the immediate benefit to recipient countries. Repayment is normally expected within 4½–7 years. The FCL is for countries with very strong fundamentals. Emergency assistance. subject to availability. Access is determined on a case-bycase basis.access limits and in cases of exceptional access. with front-loaded access where appropriate. and structural policies. Arrangements under the EFF are thus longer than SBAs—usually 3 years. technical assistance provided to emerging and 10 . or it may be treated as precautionary. Further. Postconflict countries are also major beneficiaries. Emergency loans are subject to the basic rate of charge. This facility was established in 1974 to help countries address longer-term balance of payments problems requiring fundamental economic reforms. although interest subsidies are available for PRGF-eligible countries. Loans must be repaid within 3¼–5 years. The IMF helps these countries to strengthen their capacity in both human and institutional resources. TECHNICAL ASSISTANCE: IMF technical assistance supports the development of the productive resources of member countries by helping them to effectively manage their economic policy and financial affairs. and track records of policy implementation and is particularly useful for crisis prevention purposes. Surcharges apply to high levels of access.

financial sector sustainability. monitoring. In what areas does the IMF provide technical assistance? The IMF provides technical assistance in its areas of core expertise: macroeconomic policy. countries have asked for help to address financial sector weaknesses identified within the framework of the joint IMF-World Bank Financial Sector Assessment Program. and to help heavily indebted poor countries undertake debt sustainability analyses and manage debt-reduction programs. and is an important complement to these other core IMF functions. from identification of need.industrialized economies in select cutting-edge areas helps provide traction to IMF policy advice. there is a continuing demand for technical assistance to help low-income countries build capacity to design and implement poverty-reducing and growth programs. achieving greater integration between technical assistance. 11 . efforts in recent years to strengthen the international financial system have triggered additional demands for IMF technical assistance. and keeps the institution up-to-date on innovations and risks to the international economy. surveillance and lending work results in policy and other experiences that further inform and strengthen the IMF's technical assistance program according to international best practices. fiscal. monetary policy. Specialized technical assistance from the IMF helps build capacity in countries for effective policymaking. In particular. expenditure management. and lending operations is a key priority for the IMF. implement recommendations from off-shore financial centers assessments. Conversely. and strengthen measures to combat money laundering and the financing of terrorism. to implementation. b. tax policy and revenue administration. At the same time. How is technical assistance provided? The recipient country is fully involved in the entire process of technical assistance. For example. The IMF also contributes actively to the Integrated Framework for trade-related technical assistance. the exchange rate system. adopt and adhere to international standards and codes for financial. and macroeconomic and financial statistics. d. including in support of surveillance or lending operations. surveillance. c. and evaluation. Integration of technical assistance with IMF surveillance and lending Technical assistance contributes to the effectiveness of the IMF's surveillance and lending programs. which aims to assist low-income countries expand their participation in the global economy. and statistical management. In view of these linkages.

Russia. Bilateral donors to the IMF's technical assistance program include Australia. and two further centers in Africa. It is financed by both internal and external resources. and the United States. Brazil. Assistance might also be provided in the form of technical and diagnostic studies. MEMBERSHIP QUALIFICATIONS: 12 . helps avoid duplication of advice by different donors. and it is planning to open three additional regional centers—in Central Asia. In FY 2008. and seminars for country officials through a network of seven regional training institutes and programs. France. Finland. and strengthens collaboration with donors and other technical assistance providers. the Inter-American Development Bank.. Belgium. The regional centers will be complemented by technical assistance financed through topical trust funds. the latter comprising funds from bilateral and multilateral donors. In addition to training offered at the IMF Institute in Washington D. support is often provided through staff missions of limited duration sent from headquarters. Luxembourg. Norway. India.C. the United Nations Development Program (UNDP). the Netherlands. Such cooperation and resource sharing with external donors has a few benefits: it leverages the internal resources available for technical assistance. Multilateral donors include the African Development Bank.The IMF delivers technical assistance in various ways. The IMF has increasingly adopted a regional approach to the delivery of technical assistance and training. the Asian Development Bank. Canada. the Republic of Korea. Italy. external financing accounted for approximately a fifth of the IMF's total technical assistance budget. concentrating on institution building in connection with anti-money laundering and combating the financing of terrorism. Germany. Depending on the nature of the assignment. the Arab Monetary Fund. Japan. Portugal. New Zealand. the United Kingdom. the IMF opened a new center in Central America. workshops. and in the Middle East. the United Nations. and "on-line" advice and support. workshops. It operates six regional technical assistance centers—in the Pacific. A first such fund was will start operations in May 2009. In May 2009. training courses. East. e. Austria. West and Central Africa. Switzerland. Sweden. Ireland. or the placement of experts and/or resident advisors for periods ranging from a few weeks to a few years. seminars. Denmark. and the World Bank. the IMF also offers courses. the Caribbean. How is technical assistance paid for? Technical assistance accounts for about one-fifth of the IMF's operating budget. China. Singapore. the European Commission.

Any country may apply for membership to the IMF. its voting weight. the president of Ecuador.imf. After the Board of Governors has adopted the "Membership Resolution." These recommendations cover the amount of quota in the IMF. Venezuela was forced to back down because a withdrawal would have triggered default clauses in the country's sovereign bonds. Similarly. The Fund's Board of Governors must vote on these reforms by April 28. 2008." the applicant state needs to take the legal steps required under its own law to enable it to sign the IMF's Articles of Agreement and to fulfill the obligations of IMF membership. although that is rare. The United States has exclusive veto power. the IMF's Executive Board ended a period of extensive discussion and negotiation over a major package of reforms to enhance the institution's governance that would shift quota and voting shares from advanced to emerging markets and developing countries. The application will be considered first by the IMF's Executive Board. the IMF's member countries agreed to the first round of ad hoc quota increases for four countries. in April 2007. A member's quota in the IMF determines the amount of its subscription. at the end of April. the Executive Board will submit a report to the Board of Governors of the IMF with recommendations in the form of a "Membership Resolution. Marxist revolutionary. its access to IMF financing. Chavez dubbed both organizations as “the tools of the empire” that “serve the interests of the North”. A few days later. Venezuelan president Hugo Chavez announced that the country would withdraw from the IMF and the World Bank." — Che Guevara. On March 28. any member country can withdraw from the Fund. A member state cannot unilaterally increase its quota — increases must be approved by the Executive Board and are linked to formulas that include many variables such as the size of a country in the world economy. 2008. For example. the form of payment of the subscription. both countries remain as members of both organizations. Rafael Correa announced the expulsion of the World Bank representative in the country. including China. For example. and its allocation of Special Drawing Rights (SDRs). in 2001. 1959 13 . CRITICISM "The interests of the IMF represent the big international interests that seem to be established and concentrated in Wall Street. ensuring it remained at the level of the smallest G7 economy (Canada).org.[11] In September 2005. After its consideration. China was prevented from increasing its quota as high as it wished. and other customary terms and conditions of membership. See "Reform of IMF Quotas and Voice: Responding to Changes in the Global Economy" at www. As of June 2009.

However. experienced a catastrophic economic crisis in 2001. Before the IMF got involved in the country. It is claimed that conditionality (economic performance targets established as a precondition for IMF loans) retard social stability and hence inhibit the stated goals of the IMF. He argued that by converting to a more Monetarist approach. as it was designed to provide funds for countries to carry out Keynesian reflations. which had been considered by the IMF to be a model country in its compliance to policy proposals by the Bretton Woods institutions. the IMF sometimes advocates "austerity programmes. the adjustment resulted in very little foreign investment. normally to western corporations at heavily discounted prices." Argentina. to siphon off billions of Kenyan shillings in what came to be known as 14 . Another example of where IMF Structural Adjustment Programmes aggravated the problem was in Kenya. with many blaming the IMF for the region's economic problems. including Structural Adjustment Programs. which caused sub national spending to increase rapidly. which some believe to have been caused by IMF-induced budget restrictions — which undercut the government's ability to sustain national infrastructure even in crucial areas such as health. but allowed Kamlesh Manusuklal Damji Pattni. and that the IMF "was not participating in a conspiracy." increasing taxes even when the economy is weak.Two criticisms from economists have been that financial aid is always bound to so-called "Conditionality". education. with the help of corrupt government officials. The current — as of early 2006 — trend towards moderate left-wing governments in the region and a growing concern with the development of a regional economic policy largely independent of big business pressures has been ascribed to this crisis. in his book Globalization and Its Discontents. Stiglitz. Others attribute the crisis to Argentina's misdesigned fiscal federalism. which is Keynesian policy. and security — and privatization of strategically vital national resources. The IMF mandated that the Kenyan central bank had to allow easier currency movement. but it was reflecting the interests and ideology of the Western financial community. the Kenyan central bank oversaw all currency movements in and out of the country. in order to generate government revenue and balance budget deficits. former chief economist and Senior Vice President at the World Bank. while Structural Adjustment Programs lead to an increase in poverty in recipient countries. These policies were criticized by Joseph E. the fund no longer had a valid purpose. The crisis added to widespread hatred of this institution in Argentina and other South American countries. One of the main SAP conditions placed on troubled countries is that the governments sell up as much of their national assets as they can. That said. Countries are often advised to lower their corporate tax rate.

has led many economists to argue for reform. 2007. The agenda includes changes in IMF governance to enhance the role of developing countries in the institution's decision-making process and steps to deepen the effectiveness of its core mandate. far more than at any time in Post-Depression history.the Goldenberg scandal. While it was created to help stabilize the global economy. the former Romanian Prime Minister Tăriceanu stated that "Since 2005. 15 .[citation needed] In an interview. In 2006. IMF is constantly making mistakes when it appreciates the country's economic performances". an IMF reform agenda called the Medium Term Strategy was widely endorsed by the institution's member countries. Overall the IMF success record is perceived as limited. and the fact that it tends to only respond to them or even create them rather than prevent them. The considerable delay in the IMF's response to any crisis. On June 15. since 1980 critics claim over 100 countries (or reputedly most of the Fund's membership) have experienced a banking collapse that they claim have reduced GDP by four percent or more. a landmark measure that replaced a 30-year-old decision of the Fund's member countries on how the IMF should analyze economic outcomes at the country level. which is known as economic surveillance or helping member countries adopt macroeconomic policies that will sustain global growth and reduce poverty. leaving the country worse off than it was before the IMF reforms were implemented. the Executive Board of the IMF adopted the 2007 Decision on Bilateral Surveillance.

1 2927.4 4605. Subbarao Hans-Rudolf Merz Ken Henry Guillermo Ortiz Miguel Fernández Ordóñez de Henrique Campos Meirelles Seong Tae Lee Rodrigo Cabeza Morales Votes: Number Votes: % of Total 16.35 Okyu Kwon Gastón Parra 1.B.38 Nout Wellink 2.09 Geithner 6.5 6369.22 Luzardo Ben Bernanke Toshihiko Fukui Peer Steinbrück Christian Noyer Mervyn King Hu Xiaolian Mario Draghi Hamad AlSayari Mark Carney Sergey Ignatiev L.5 6985.9 3036. Al3.99 Weber Christine 4.88 4.2 10738.94 Lagarde Alistair 4.09 1.25 Tremonti Ibrahim A.3 2659.86 4.02 5.4 Mantega 1.5 10738.49 Wayne Swan Agustín 1.72 Xiaochuan Giulio 3.57 1.21 371743 133378 130332 107635 107635 81151 70805 70105 63942 59704 51874 46302 41832 34835 32614 31778 30739 30611 29523 26841 16 .66 3.13 Koji Omi Axel A.89 1.J.4 Pedro Solbes Guido 1. 5.79 6.3 13312.47 1.8 13008.33 1.2 4158.94 Darling Zhou 3.2 5945.2 3.59 Roth 1.21 Assaf 2.4 5162.39 1.91 Mukherjee Jean-Pierre 1.1 7055. van Geest Jean-Pierre Arnoldi D.43 1.8 3048. South Venezuela 37149.7 2.17 2. 17.93 Jim Flaherty Aleksei 2.1 Timothy F.Table showing the top 20 member countries in terms of voting power: IMF Quota: Quota: % of Alternate Member Millions Governor Total Governor Country of SDRs United States Japan Germany France United Kingdom China Italy Saudi Arabia Canada Russian Federation Netherland s Belgium India Switzerlan d Australia Mexico Spain Brazil Korea.74 Kudrin 2.45 Carstens 1.38 1.34 2.2 3458.12 Guy Quaden Pranab 1.5 3236.4 3152.89 2.5 8090.86 3.

accelerate economic growth. achieve macroeconomic stability. This is essential for achieving sustainable economic growth and raising living standards. and global consequences of each member’s economic main activities of the IMF include • providing advice to members on adopting policies that can help them prevent or resolve a financial crisis. reflecting its global reach and close ties with its members. All of the IMF’s member countries are represented on its executive Board. when they find themselves short of foreign exchange because their payments to other countries exceed their foreign exchange earnings. and.CONCLUSION: The IMF is the world’s central organization for international monetary cooperation. it is an organization in which almost all of the countries in the world work together to promote the common good. and • offering technical assistance and training to countries at their request. also has offices around the world. to help them build the expertise and institutions they need to implement sound economic policies. • making financing temporarily available to member countries to help them address balance of payments problems—that is. which discusses the national. With 185 member countries. The IMF’s primary purpose is to safeguard the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to buy goods and services from each other. The iMF is headquartered in Washington. regional. 17 . and alleviate poverty.C.. D.

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