International Monetary Fund (IMF)

Ms. Sarah Jocelyn PawlakMr. Brian Edward Tesser

Roles of the IMF?What is it?

International monetary cooperation Exchange rate stability Balanced growth of international trade Poverty reduction Helps members balance debt Agency of the UN

Has its own charter, governing structure, finances

Important Documents

Articles of Agreement December 27, 1945 31 Articles

Have roman numerals attached to them (I-XXXI) General obligations of members (VIII), Capital transfers

(VI), Obligations regarding exchange arrangements (IV) 13 Schedules

Have letters attached to them (A-M Quotas (A), Termination of Participation (H), Suspension

of Voting Rights (L) Can be, and has been amended.

Age of IMF

Bretton Woods, New Hampshire, United States July 1944

Officially created 1945 44 countries were represented.

Avoid economic policies that could create a situation similar to the Great Depression

Changes since 1945

Increased monetary support during crisis Greater flexibility regarding loans Gives advice to member nations Rectifies flaws after a crisis Reform of governance

Purpose

WORLD FINANCIAL STABILITY Provide Economic Cooperation Trade Growth Employment Opportunities Lessened Poverty Exchange Rate Stability Open System of International Payment Monetary Loans

Membership

Currently: 187 Countries Some countries not included: Cuba, North

Korea, Vatican City

Members are represented through a quota system based on their involvement in the global economy EX: US has more representation than Kenya

Leadership 24 Member Executive Board

5 Executive Directors: Appointed by 5 Countries with the largest quotas

19 Executive Directors: Elected by remaining members Managing Director- Chairman of the Executive Board Controls major decisions within the IMF

All member countries appoint a governor to the Board of Governors

All countries are proportionally represented based on economic rank

Meets several times a week Elections/Appointments occur every 2 years- Can be reelected

“Who wants the last

spoonful of Guac?!”

Leaders Managing Director- Christine Lagarde- France 5 Appointed Executive Director

Meg Lundsager- USA Mitshuiro Furusawa- Japan Hubert Temmeyer- Germany Ambroise Fayolle- France Alexander Gibbs- United Kingdom

Others Carlos Perez-Verdia- Mexico Tao Zhang- China Aleksei V. Mozhin- Russia Jafar Mojarrad- Iran

Advantages of Membership

International Monetary Cooperation Financial Stability Temporary Financial Help when in debt Financial Advice Increased chance of Economic Growth

Disadvantages of Membership

Rich countries have more influence than poorer countries

Only receives loans if a country will agree to conditions Conditions may lead to increased poverty

Rich countries often dominate foreign resources

Financial advice is not always sound

International Impact: Mexico

Biggest Precautionary Loans In December, 2011, the Executive Board

reviewed Mexico’s request to access Flexible Credit Line resources. Aid was given to Mexico

Because of the IMF, Mexican credibility in the global economy has increased

Introduced Structural Adjustment programs

International Impact: Nigeria

IMF introduced the concept of Structural Adjustment programs Nigeria has benefitted from them

Has enabled them to create a free market economy

International Impact: United Kingdom

The UK is one of the top 5 countries involved in the IMF

One of the appointed Executive Directors due to their large quota

Very influential in the IMF

Works ConsultedForbes. Forbes Magazine. Web. 23 Mar. 2012. <http://www.forbes.com/2009/04/02/ mexico-imf-credit-business-oxford.html>. "IMF -- International Monetary Fund Home Page." Document Moved. Web. 23 Mar. 2012. <http://www.imf.org/external/>. "The International Monetary Fund." International Organisations. Web. 23 Mar. 2012. <http://www.oxfam.org.uk/education/resources/milking_it/milkingit/information/ international_orgs/international_orgs_imf.htm>. "Structural Adjustment Programs in Nigeria." Structural Adjustment Programs in Nigeria. Web. 23 Mar. 2012. <http://sapnigeria.wordpress.com/>. "Top Ten Reasons to Oppose the IMF." IMF. Web. 23 Mar. 2012. <http://

www.thirdworldtraveler.com/IMF_WB/TenReasons_OpposeIMF.html>.