1. International Monetary Fund (IMF) Should the values of the United States be reflected in the conduct of the International Monetary Fund?

2. International Monetary Fund Historical Background IMF Mission Scope of Organization Membership & Governance Financial Overview

3. Historical Background UN Bretton Woods Agreement – 1944  Created both the World Bank and IMF The World Bank arranges long term loans to help developing countries The IMF was created to support orderly international currency exchanges and to help nations having balance of payment problems through short term loans of cash

4. Mission Achieve International Financial Stability and Cooperation  Keep sufficient cash reserves for each member nation to avoid financial crises due to currency instability Promote Economic Growth  Loan reserve assets to member nations that have financial or balance of payments problems  Advise member nations on Macroeconomic policy issues such as interest rates and investment levels

5. Scope of Organization Work with United Nations/World Bank Members States Lend Money to Member Nations Set Currency Reserve Amounts (dues) for Member Nations

6. Membership & Governance United Nations Chartered 184 Member States Board of Governors (1 from Each State) Managing Director Executive Board (24 Members) Weighted Voting System  US Representative holds 17% of total Voting Power  27 Countries together hold 1.4% of total Voting Power  Decisions are most often made by consensus, rather than fractious parliamentary fights.

7. Financial Overview Historical Finances  Began Operating with US$ 9 Billion Equivalent  By the Early 1980’s the IMF had ~ US$50 Billion  The IMF Today has US$265 Billion Equivalent Some Example Lending  Belgium took first loan of US$50 Million in 1952 to bolster currency reserves for their central bank  Loaned US$36 Billion to Indonesia, Korea, and Thailand during the Asian financial crises of 1997-1998  Most recently, the IMF saved Argentina from defaulting on a World Bank payment of US$1 Billion by arranging credit of an additional US$2.98 Billion for transitional financial support to prevent complete economic collapse.

8. Financial Overview Members pay IMF quota in Tradable Currencies  (Japanese Yen, U.K. Pounds, or U.S. Dollars) National quotas are determined by size and strength of member nations economy IMF Acct. Unit is SDR (Special Drawing Rights)  1 SDR roughly equivalent to US$1.37 The IMF can also borrow funds to supplement Reserves

9. Conclusion Should the values of the United States be reflected in the conduct of the International Monetary Fund?