Alexander Danilenko

 General information  History  Structure  Key functions  Criticism  Conclusion  Sources

“International supranational monetary and credit institution that has the status of a specialized representative UN agency”

Members  188 countries (187 members of the UN and the Republic of Kosovo)  Former members: Cuba (left in 1964), the Republic of China (replaced by the People’s Republic of China)  Do not belong to the IMF: Andorra, Cook Islands, Liechtenstein, Monaco, Nauru, Niue, the North Korea, Vatican City, the states that have limited recognition  The former Czechoslovakia was expelled in 1954 for "failing to provide required data" and was readmitted in 1990, after the Velvet Revolution.

International Monetary Fund  Type: International Economic Organization  Official languages: English, French, Spanish  Headquarters: Washington, the USA  Managing director: Christine Lagarde

History  Created in 1944 (July 22) at the Bretton Woods Conference as a necessary element for reconstruction of the post-World War II.  Came into formal existence in 1945 (December 27) when the Articles of Agreement were signed by 29 members.  Operations were begun in 1947 (March 1).

History  Enlargement by independent African states (in the late 1950s and during the 1960s).  End of Bretton Woods system (the Nixon Shock, 1971).  Enlargement by former-Soviet states (in three years membership increased from 152 countries to 172).

Structure

Voting system  Basic votes (equal number for all members)  Quota (depends on member’s economy; determines how much member can borrow; determines member’s share in allocations of special drawing rights). Quotas are normally reviewed every 5 years.  The largest shareholder (has 16.75% of the total vote) is the USA.

Objectives  To provide a forum for cooperation on international monetary problems.  To facilitate the growth of international trade, thus promoting job creation, economic growth, and poverty reduction.  To promote exchange rate stability and an open system of international payments.  To lend countries foreign exchange when needed, on a temporary basis and under adequate safeguards, to help them address balance of payments problems.

Functions  Surveillance  Technical assistance and training  Lending  Research and data

Criticism of IMF Overseas Development Institute (ODI) research undertaken in 1980 pointed to five main criticisms of the IMF:  Firstly, developed countries were seen to have a more dominant role and control over less developed countries (LDCs).  Secondly, the Fund worked on the incorrect assumption that all payments disequilibria were caused domestically.

Criticism of IMF  The third criticism was that the effects of Fund policies were anti-developmental. The deflationary effects of IMF programmes quickly led to losses of output and employment in economies where incomes were low and unemployment was high.  Fourthly is the accusation that harsh policy conditions were self-defeating where a vicious circle developed when members refused loans due to harsh conditionality, making their economy worse and eventually taking loans as a drastic medicine.  Lastly is the point that the Fund's policies lack a clear economic rationale.

Conclusion  Crisis always lead to some difficulties.  Countries are not obliged to take an IMF loan.  IMF is an easy target.  IMF have had Some Successes. Jordan, Mexico, Kenya

Sources  International Monetary Fund. Dostupné z:  Wikipedia: International Monetary Fund. Dostupné z: