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The International Monetary Fund (IMF


is an
international organization headquartered in Washington, D.C.
Formed in 1944 at the Bretton Woods Conference, it came into
formal existence in 1945 with 29 member countries and the goal of
reconstructing the international payment system.
188 countries are involved nowadays.
Countries contribute funds to a pool through a quota system from
which countries with payment imbalances can borrow.
The International Monetary Fund (IMF) and World Bank are run by
their member governments, but not on the basis of one-countryone-vote.
Operate like private corporations, except that the owners of
shares are governments instead of individuals. Together, the United
States, Germany, Japan, the U.K. and France control about
40% of the shares in both institutions.

crisis is an opportunity to be exploited to drive the reform forward. Political economy of reform concedes that every   International organizations & G-20 allies have used the current crisis to their advantage by reinforcing the power of the IMF and tightening further the disciplinary power of capital.   .   Unconditional IMF Flexible Credit & democratise the Bretton Woods can be regarded as mechanisms traps  that subject the poor to closer control and exploitation by capital.

OECD.Kahn famously stated that ‘IMF is back’ since almost every article in the media is somehow related to the IMF work. Principal actors: IMF. World Bank.Dominique Strauss.   Carefully orchestrated behind the scenes process. Place: London G20. capitalism on a global scale ≠ Washington Principal aim: . UK government. April 2009 Spring Meeting of the IMF and the World Bank.

  Parallel strategy. = integration into the global capitalist economy & maximization of the number of people in work and the productivity of their labor. . Promote productive use of the poor’s more abundant asset – labor & the creation of a genuinely global proletariat. The key theme is COMPETITIVENESS.The Global Project. Designed in 1993 and 1994 respectively. Focused exclusively ‘emerging economies’. subordination of states to market ≈ promoted strategies of IMF and World Bank. Washington Consensus = privatization. liberalization. reflected today in EU ‘Lisbon Agenda for Growth and Jobs’ & OECD’s annual series Going for Growth.

  The new mantra ‘a global crisis requires a global solution’ continues to promote exactly the same programme. Universal project aimed at maximizing the level of competitiveness throughout the global capitalist economy. • International organizations and ONG’s increase the aid directed to the same ends.   . • National governments maintain macro-economic stability and a ’good climate for investment’.

• IFIs have seized the opportunity of the current crisis to press ahead the project.Conclusions: • The project pursued is part of a broader global project. which also involves the developed world. • Emphasis on labor quantity and productivity.   .

• Fund works on the incorrect assumption that all payments disequilibria are caused domestically.Criticism: • Developed countries were seen to have a more dominant role and control over less developed countries (LDCs) primarily due to the Western bias favoring capitalism. • that IMF policies are antiThe third criticism was . IMF does not distinguish sufficiently between disequilibria with predominantly external as opposed to internal causes.