General information History Structure Key functions Criticism Conclusion Sources
“International supranational monetary and credit institution that has the status of a specialized representative UN agency”
Members 188 countries (187 members of the UN and the Republic of Kosovo) Former members: Cuba (left in 1964), the Republic of China (replaced by the People’s Republic of China) Do not belong to the IMF: Andorra, Cook Islands, Liechtenstein, Monaco, Nauru, Niue, the North Korea, Vatican City, the states that have limited recognition The former Czechoslovakia was expelled in 1954 for "failing to provide required data" and was readmitted in 1990, after the Velvet Revolution.
International Monetary Fund Type: International Economic Organization Official languages: English, French, Spanish Headquarters: Washington, the USA Managing director: Christine Lagarde
History Created in 1944 (July 22) at the Bretton Woods Conference as a necessary element for reconstruction of the post-World War II. Came into formal existence in 1945 (December 27) when the Articles of Agreement were signed by 29 members. Operations were begun in 1947 (March 1).
History Enlargement by independent African states (in the late 1950s and during the 1960s). End of Bretton Woods system (the Nixon Shock, 1971). Enlargement by former-Soviet states (in three years membership increased from 152 countries to 172).
Voting system Basic votes (equal number for all members) Quota (depends on member’s economy; determines how much member can borrow; determines member’s share in allocations of special drawing rights). Quotas are normally reviewed every 5 years. The largest shareholder (has 16.75% of the total vote) is the USA.
Objectives To provide a forum for cooperation on international monetary problems. To facilitate the growth of international trade, thus promoting job creation, economic growth, and poverty reduction. To promote exchange rate stability and an open system of international payments. To lend countries foreign exchange when needed, on a temporary basis and under adequate safeguards, to help them address balance of payments problems.
Functions Surveillance Technical assistance and training Lending Research and data
Criticism of IMF Overseas Development Institute (ODI) research undertaken in 1980 pointed to five main criticisms of the IMF: Firstly, developed countries were seen to have a more dominant role and control over less developed countries (LDCs). Secondly, the Fund worked on the incorrect assumption that all payments disequilibria were caused domestically.
Criticism of IMF The third criticism was that the effects of Fund policies were anti-developmental. The deflationary effects of IMF programmes quickly led to losses of output and employment in economies where incomes were low and unemployment was high. Fourthly is the accusation that harsh policy conditions were self-defeating where a vicious circle developed when members refused loans due to harsh conditionality, making their economy worse and eventually taking loans as a drastic medicine. Lastly is the point that the Fund's policies lack a clear economic rationale.
Conclusion Crisis always lead to some difficulties. Countries are not obliged to take an IMF loan. IMF is an easy target. IMF have had Some Successes. Jordan, Mexico, Kenya
Sources International Monetary Fund. Dostupné z: http://www.imf.org/external/index.htm http://www.imf.org/external/index.htm Wikipedia: International Monetary Fund. Dostupné z: http://en.wikipedia.org/wiki/Bond_(finance)