The International Monetary Fund (IMF) is an international organization with 188 member countries that provides loans to developing countries to help stabilize their economies. The IMF is headquartered in Washington D.C. and led by a 24-person executive board representing member countries. Developed countries contribute the most funds to the IMF and have greater voting rights, which some criticize as it means the conditions placed on loans favor their policies. Conditions typically require cuts to public services that make the policies unpopular domestically.

1. THE IMF
INTERNATIONAL MONETARY FUND

2. What is the IMF?
• It is a global economic institution for helping
developing countries.

3. THE International Monetary Fund managing
director, Christine Lagarde

4. Fast Facts on the IMF
• Membership: 188 countries
• Headquarters: Washington, D.C.
• Executive Board: 24 Directors representing countries or
groups of countries
• Staff: Approximately 2,600 from 142 countries
• Total quotas: US$362 billion (as of 8/28/14)
• Biggest borrowers (amount outstanding as of 8/28/14):
Greece, Portugal, Ireland, Ukraine
• Biggest precautionary loans (amount agreed as of 8/28/14):
Mexico, Poland, Colombia, Morocco

5. THE GOAL OF IMF
• To help developing countries to stabilize their
economies.

6. How does the IMF work?
• Developed countries make loans to
developing counties but the IMF is facing
criticism for how it makes loans

7. How does the IMF make loans?
• The IMF lends money to developing countries
but with conditions.
• Examples of conditions :
• Cuts in education, health, cuts of public
services in general.
• These conditions forces developing countries
to adopt unpopular policies

8. CONDITIONALITY
• The conditions and adjustments that
governments agree to when they seek loans
from the IMF and the World Bank

9. IMF
DEVELOP COUNTRIES
• Voting rights
• Make loans
• Conditionality (conditions
to the loans)
DEVELOPING COUNTRIES
• Take loans
• Use the funding to build
roads and schools and
invest in their people.
• They struggle under the
weight of all their loans.
• They seek loan forgiveness
or debt relief

10. VOTING SYSTEM
• Developed countries have greater voting
rights because voting is weighted based on
contributions to the IMF.
• QUOTA: How much money countries are
obligated to provide to the IMF. This also
determines their voting power in the IMF.

11. Crititicism
• Conditionality
• Voting system

12. QUOTAS
http://www.imf.org/external/np/sec/memdir/m
embers.aspx

13. VOCABULARY
• Balance of payments
• Revenues
• Expenditures
• GDP (Gross domestic
product)
• Loan
• Budget surplus
• Budget deficit
• Borrower (donor country)
• Creditor (debtor country)
• Debt
• Lend, lender
• Currency

14. ISSUES DELEGATES MUST ADDRESS
• Conditionality
• Loan forgiveness
• Voting system

15. SOURCES
www.imf.org/external/np/exr/facts/howlend.ht
m
www.imf.org/external/about.htm
www.imf.org/external/np/exr/key/lending.htm
www.imf.org/external/np/key/quotav.htm
www.imf.org/external/country/index.htm