SAP ID- 500022417
• The International Monetary Fund is
an international organization that was initiated
in 1944 at the Bretton Woods Conference.
• It was established by 45 countries .
• Its headquarter is in Washington, D.C., United
• The IMF currently has 188 members.
The IMF has played a part in shaping the global
economy since the end of World War II.
o Cooperation and reconstruction after second
o The end of the Bretton woods system.
o Debt and painful reforms.
o Societal change for Eastern Europe and
o Globalization and the crisis.
• The Board of Governors is the highest
decision-making body of the IMF.
• The International Monetary and Financial
Committee meets twice a year.
• The Development Committee.
• The Executive Board.
• The Managing Director.
The IMF's fundamental mission is to help ensure
stability in the international system. It does so in
three ways: keeping track of the global economy
and the economies of member countries; lending
to countries with balance of payments
difficulties; and giving practical help to
• To promote international monetary cooperation and
facilitate a balanced growth of international trade
• To promote exchange stability, to maintain exchange
agreements among members, and to avoid competitive
• To assist in the establishment of a multilateral system
of payments in respect of current transactions between
members and in the elimination of foreign exchange
restrictions which hampers the growth of world trade.
• To make the general resources of the IMF temporarily
available to member countries, under adequate
RELEVANCE OF IMF IN
IMF describe itself as an organ of 188 countries .
It works to foster global monetary corporation .
Secure financial stability .
Facilitate international trade .
Promote high employment & sustainable
economic growth .
• Reduce poverty around the world .
1. Provision of short term loans to solve balance
of payment problems
2. Offers special aids to member countries to aid
them in solving their economic problem.
3. Offers technical advice on how to solve
balance of payment problem.
1. Exacerbates Economic Problems. It is argued that
the conditions of IMF loans cause more harm than
2. One Size Fits All. The IMF frequently argues for
the same economic policies regardless of the
3. Takes away political autonomy. Countries such as
Jamaica, argue that the IMF take away the ability for
countries to decide national policy.
4. Moral Hazard. The IMF has also been criticised by
free market economists arguing that they do to
Institutions such as IMF perform economic
surveillance over most of the world's economy, a
valuable task that no other international or private
organization could perform with such skill.
IMF also serve as a store of expert knowledge and
wisdom for countries throughout the world that lack
trained specialists. IMF has almost failed in meeting
the lofty goals of their founders.
The international monetary fund and the
developing countries: A critical evaluationSebastian Edwards
A Critical Assessment of IMF Concerns -Sanjay
A Critical Review of the IMF's Tools for
Crisis Prevention-Roberto Marino / Ulrich