Ifbm role of imf

1. The Role of IMF in Development of International
Food Business

2. The International Monetary Fund was conceived in July 1944
originally with 45 members and came into existence in
December 1945 when 29 countries signed the agreement.
IMF started to make service with IBRD in 1947. The IMF
works to improve the economies of its member countries.
History of IMF

3. About IMF
• Year the IMF was established
1994
• Members of countries
189
• Nationalities represented by staff
150
• Executive directors
24
1 trillion dollars • Total amount of IMF is able to lend to its members
countries
• Current lending agreement
36
• Interest rate on loan to low-income countries
0%
• For hands on technical advice, training and other
activity.
303 million dollars
Source: IMF Website

5. IMF is the intergovernmental organization that oversees the global
financial system by following the macroeconomic policies of its member
countries, in particular those with an impact on exchange rate and the
balance of payments.
It is an organization formed with a stated objective of stabilizing
international exchange rates and facilitating development through the
enforcement of liberalizing economic policies on other countries as a
condition for loans, restructuring oraid.
International Monetary Fund

6. 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. Its
headquarters are in Washington,United States.

7. As set forth in its Articles of Agreement, the purposes of the IMFare
(1) To promote international cooperation on international monetary
problems,
(2)To facilitate the expansion and balanced growth of international trade,
promoting high levels of employment and real income and the development
of productive resources in all member countries
(3)To promote exchange rate stability and to avoid competitive exchange
rate depreciation,
The IMF’s Mandate

8. (4)To help establish a multilateral system of payments among countries
for current transactions and to help eliminate foreign exchange restrictions
which hamper world trade,
(5)To make loans to member countries on a temporary basis with adequate
safeguards for repayment,
(6) To shorten with such loans the duration and to lessen the degreeof
disequilibrium in the international balances of payments of members.

9. What the IMF does?
IMF
TECHNICAL
ASSISTANCE
SURVEILLENCE
LENDS

10. 1. Surveillance
The IMF promotes economic stability and global growth by
encouraging countries to adopt sound economic and financial policies.
To do this, it regularly monitors global, regional, and national economic
developments. It also seeks to assess the impact of the policies of
individual countries on other economies.
This process of monitoring and discussing countries’economic and
financial policies is known as Bilateral Surveillance.

11. 2. Technical Assistance and Training
IMF offers technical assistance and training to help member countries
strengthen their capacity to design and implement effective policies.
Technical assistance is offered in several areas, including fiscal policy,
monetary and exchange rate policies, banking and financial system
supervision and regulation, and statistics.

12. 3. Lending
IMF financing provides member countries.
A policy program supported by financing is designed by the
national authorities in close cooperation with the IMF.
Continued financial support is conditional on the effective
implementation of this program.
Source:
https://www.imf.org/external/a
bout/howwedo.htm

13. Role of IMF
1) Promoting research in various areas of international economics
and monetary economics.
2) Providing a forum for discussion and consultation among
member countries.
3) Focusing on its core macroeconomic and financial areas of
responsibility.
4) Working in a complementary fashion with other institutions
established.

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5) It works to foster global growth and economic stability by
providing policy advice and financing the members by working
with developing nations to help them achieve macroeconomic
stability and reduce poverty.
6) The IMF is playing an expanding role in the global monetary
system.
7)To facilitate the expansion and balanced growth of international
trade.
8) To promote international monetary cooperation

15. Financialisation of food and agriculture
The World Bank and IMF have played a pivotal role in facilitating the
financialisation trend through their support for market-led land reforms
and financial sector deregulations, which enabled private investors’
access to large-scale land deals in developing countries and further
speculation over commodity futures.
World Bank and IMF Programmes have involved the Privatization and
commodification of public lands and of agriculture-related services.
IMF conditionality from 1980 to 2014 estimated that 43 per cent of
IMF loan programmes include food and agriculture conditions, and
that the majority of its interventions constitute a push for liberalisation
of the sector.

16. In 2008 global financial crisis, financial speculation on food commodities
brought food prices to a record high, which in turn sparked a ‘global land
rush’. The sharp increase in international food prices triggered a peak of cross-
border land acquisitions by players not only in the agribusiness industry but
also by financial actors that had little interest in actually feeding the world.
The US-based pension fund TIAA. It escalated its agricultural investment
strategy by acquiring the world’s largest agricultural asset managers,
Westchester Group, with over 8 billion dollars and 2 million acres in
farmland assets under management in the United States, Australia, South
America and Europe.
The prioritization of shareholder value encouraged greater corporate
concentration as agrifood corporations restructured in order to meet investor
demands for higher returns.

17. IMF Calls For Sustainable Food Systems In A Post-Covid World
The rebuilding of economies after Covid-19 crisis offers a unique opportunity
to transform the global food system and make it resilient to future shocks,
ensuring environmentally sustainable and healthy nutrition for all, the
International Monetary Fund (IMF)
Food systems are at the cross-roads of human, animal, economic and
environmental health. Ignoring this exposes the world economy to ever-larger
health and financial shocks as climate changes and global population grows.
"By prioritising food system reforms in our 'build forward' agendas, we can
instead make concrete inroads toward the Sustainable Development Goals and
the Paris Climate Agreement," said IMF.

18. The IMF blogpost said 2020 will be a year of reckoning for the world's food systems. In
just months, Covid-19 shut down half the globe. Images of panic buying, empty grocery
shelves and miles-long queues at food banks have suddenly shown how important food
systems are and how imbalanced they have become.
Cracks in the global food system's facade have long been apparent. According to the
latest State of Food Security and Nutrition in the World, already in 2018 about 820
million people went to bed hungry and a third of all people lacked essential nutrients.
At the same time, 600 million people were categorised as obese and two billion
overweight because of imbalanced diets which were also associated with obesity,
diabetes, cancer, and cardiovascular diseases that compromise immune health.
The IMF has thus called for building resilient food supply chains, promoting healthy
diets, shifting towards regenerative farming and promoting conservation efforts in line
with recent proposals by the UN Environment Assembly.

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